As per Section 45 of the Companies Act, 1956 which states the provision of Reduction in Member of the company i.e. private as well as public.
Members Severally Liable for Debts where business carried on with less than Seven in case of Public Company, or in the case of a Private Company, Two Members. If at any time the number of members of a company is reduced, in the case of a public company, below seven, or in the case of a private company, below two, and the company carries on business for more than Six Months while the number is so reduced, every person who is a member of the company during the that time is personally liable for hte debth of the company. The members is not liable to take the advantage of the limited liability. It is a Part of the lifting the Corporate Veil.