Directors & Firm
This query is : Resolved
09 February 2010
Respected All,
XYZ PVT LTD is a company with directors X,Y and Z.
The directors decide to form a partnership firm in which X,Y,Z, XYZ PVT LTD and SKK PVT LTD will be partners.
The capital contribution by the partners is:
X - 5%
Y - 5%
Z - 5%
XYZ P LTD- 45%
SKK P LTD- 40%
The profit sharing ratio will 1/5 th each.
Is there any restriction or compliance regarding the formation of firm?
Regards
Jyoti
XYZ PVT LTD is a company with directors X,Y and Z.
The directors decide to form a partnership firm in which X,Y,Z, XYZ PVT LTD and SKK PVT LTD will be partners.
The capital contribution by the partners is:
X - 5%
Y - 5%
Z - 5%
XYZ P LTD- 45%
SKK P LTD- 40%
The profit sharing ratio will 1/5 th each.
Is there any restriction or compliance regarding the formation of firm?
Regards
Jyoti
10 February 2010
There is no restriction under the Indian Partnership Act Please examine the Articles of Association of the companies involved for any restrictions imposed in which case u will have to amend the Articles to suit the purpose.
10 February 2010
Thank you for the reply.
What are the compliances in this case as the directors are forming the firm with the company as one of the partners and diverting the funds of the company in the firm.
What are the compliances in this case as the directors are forming the firm with the company as one of the partners and diverting the funds of the company in the firm.
23 February 2010
as per my knowledge,
first check articles of both the companies whether they allow the company to be member of partnership firm
secondly if your company and such firm is entering into any contract then provisions of section 297,298,300,301,and AS 18 has to be followed, mind well if your company has paid up capital more than 1 Cr then u need to go for central govt approval for such contract
first check articles of both the companies whether they allow the company to be member of partnership firm
secondly if your company and such firm is entering into any contract then provisions of section 297,298,300,301,and AS 18 has to be followed, mind well if your company has paid up capital more than 1 Cr then u need to go for central govt approval for such contract
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- Scrutiny and reopening of past returns
- PPF interest-As Exempt Income disclosure
- Booth for sales promotion
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Average Cost Of High Quality Diamonds
- ITR 4 OR ITR 3 WHICH FORM CHOOSE
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
