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Discussion > Students > Others >

Can a Company be a partner in a Partnership Firm

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CA Final


[ Scorecard : 208]
Posted On 15 May 2010 at 12:39 Report Abuse

1. Can a company be a partner in a partnership firm ?

 

2. Can a company enters in to a contract with its directors to form a Partnership Firm ?

 

3. If yes then Can that company receive partner remuneration from the firm ?

 

 

 

With Regards


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Himansu Sekhar Pati
CA Final


[ Scorecard : 208]
Posted On 15 May 2010 at 14:11

Plz Reply

 

Its urgent





To_the_point
IPCC NOV 10


[ Scorecard : 125]
Posted On 17 May 2010 at 12:34

NO

u/s 4 of IPA 1932, P'ship is ' ...the relation b/w 2 or more persons....'  but a co. is not a person. It is an ARTIFICIAL PERSON. 

Hence it can't be a member of a p'ship firm.




To_the_point
IPCC NOV 10


[ Scorecard : 125]
Posted On 17 May 2010 at 12:41

 

Hope it resolves the matter.

Since  a co. can't be a member of a p'ship firm the issues touched in ur query no 2&3 do not arise at all.

Happy Studies!




Himansu Sekhar Pati
CA Final


[ Scorecard : 208]
Posted On 17 May 2010 at 13:03

I agree with you that Company is a artificial person

 

But at the same time Company can enter in to any contract with its name.

And Companies have separate legal entity

So why a company can not enter in to contract with others to form a partnership.




Devi Kala
CA Final(New)


[ Scorecard : 354]
Posted On 17 May 2010 at 13:12

A company is an artificial person... It has a seperate legal entity..  Also it can enter into contract.. So a company can enter into partnership but the articles of the company should permit the company to do the same....



Total thanks : 1 times



Member (Account Deleted)


[ Scorecard : 347]
Posted On 17 May 2010 at 14:05

Eligibility For Partnership

A partnership agreement can be entered into between persons who are competent to contract. Every person who is of the age of majority according to the law to which he is subject and who is of sound mind and is not disqualified from contracting by any law to which he is subject can enter into a partnership.

The following can enter into a partnership

1.      Individual :
An individual, who is competent to contract, can become a partner in the partnership firm. If there are more than two partners in a firm, an individual can be a partner in his individual capacity as well as in a representative capacity as Karta of the Hindu undivided family.

2.      Firm :
A partnership firm is not a person and therefore a firm can not enter into partnership with any firm or individual. But a partner of the partnership firm can enter into partnership with other persons and he can share the profits of the said firm with his other co-partners of the parent firm.

3.      Hindu Undivided Family :
A Karta of the Hindu undivided family can become a partner in a partnership in his individual capacity, provided the member has contributed his self acquired or personal skill and labour.

4.      Company :
A company is a juristic person and therefore can become a partner in a partnership firm, if it is authorised to do so by its objects.

5.      Trustees :
Trustees of private religious trust, family trust and trustees of Hindu mutts or other religious endowments are juristic persons and can therefore enter into partnership, unless their constitution or objects forbid.

 

Regards

K.Ilayaraja




CA Ankit Totla
Practicing Chartered Accountant


[ Scorecard : 469]
Posted On 17 May 2010 at 14:17

1) a company is a seperate entity and it is allowed to enter into a partnership. The director or any other authorized person  are to sign on behalf of the company. This is for a specific term or a specific vebtures.

 

the answer to the 2nd nd 3rd question is negetive.




Himansu Sekhar Pati
CA Final


[ Scorecard : 208]
Posted On 17 May 2010 at 15:48

Can the company get Remuneration




CA Ankit Totla
Practicing Chartered Accountant


[ Scorecard : 469]
Posted On 17 May 2010 at 16:20

a company can vry well recieve remuneration provided its a workin partner..!!



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