How many directors are required in a private company?

• A. At least 4
• B. At least 3
• C. At least 2
• D. At least 1

Answer: (D)

The concept tested is the minimum governance requirement for a private company. In this case, a private company can operate with a single director, so the minimum number needed is one. This reflects the idea that private companies, often smaller in scale, don’t have a mandatory requirement for a board of multiple directors. You’re allowed to have more than one director if you choose, but it isn’t required. Public companies, by contrast, typically have a higher minimum, such as two or more directors. So the best answer is that one director is required.