11 November 2010
I want to ask if a partnership firm become a share holder of Private Limited Company.if YES tell me the modalities of issue and transfer of shares and if NO then the reasons thereof.
11 November 2010
A partnership firm can be a member but not a director in the company. Only individual can be director in a company. Partnership firm can become shareholder of a company. Shares will be held in the name of partnership firm.
11 November 2010
Sanjay, I agree that only individual can be Directors of a compnay.Sec 253 But an individual being Partner in a firm, may represent as Director in the company on behalf of the partnership firm.
11 November 2010
Sir an individual of a partnership firm can be director in a company but not the partnership firm, the director will represent only himself he will sign as a director and not as a director representing the firm.
Department Clarification- A society registered under the Society Registration Act, 1860 should not be deemed to be a ‘body corporate’ within the meaning of the section 2(7) of the Companies Act, although such a society can be treated as a ‘person’ having separate legal entity apart from the members constituting it and thereby capable of being a member of a company under section 41(2) of the Companies Act, 1956. [Circular Letter, dated-24-11-1962]
Shares belonging to society held in the name of trustee simpliciter
Department Clarification-In 1957 the Department of Company Affairs was advised that the shares in the company, being the property of a charitable trust, can be held in the name of the trustee. (Extracts from Department’sFile No. 1(43)-PT/67)
30 November 2010
No. Partnership firm can never become a member or a director in any Private Limited Company. It can have a Demat a/c and purchase shares of listed companies. But, it can never become a shareholder in Private Limited Company
14 February 2011
A partnership firm ,not being a person, cannot be registered as a member of a company except where the company is licenced u/s 25 of the Companies Act,1956.
08 May 2012
same as in the above case, whether a society registered under societies registration act can become a member of private limited company? or as a director of private limited company?
Department Clarification- A society registered under the Society Registration Act, 1860 should not be deemed to be a ‘body corporate’ within the meaning of the section 2(7) of the Companies Act, although such a society can be treated as a ‘person’ having separate legal entity apart from the members constituting it and thereby capable of being a member of a company under section 41(2) of the Companies Act, 1956. [Circular Letter, dated-24-11-1962]
Shares belonging to society held in the name of trustee simpliciter.
Only Individual can be a director as per section 253 of the Companies Act, 1956.
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