Investment by Partnership firm
This query is : Resolved
CA.GAURAV SACHWANI
(Querist)
21 March 2011
A Partnership firm can invest in the shares of the private limited company and if the answer is no, please quote the law applicable.
21 March 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.
ref :- Circular 4/72 dated 9/3/1972.
So a Firm can not invest in the shares of a company in the name of the firm as the firm has no separate legal entity.
ref :- Circular 4/72 dated 9/3/1972.
So a Firm can not invest in the shares of a company in the name of the firm as the firm has no separate legal entity.
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