Investment or Loan to A Partnership Fim
Querist : Anonymous
Can it invest in the Capital or give a Loan to the Partnership Firm ?
It can invest in the Capital of the partnership firm. Also it can provide loan.
Querist : Anonymous
The provision of Company Act 1956, should be followed.
If the directors or any relative of the directors are partner of the firm, definately the provision of the companies act should be followed.
In the initial question, it was asked only for whether co., can give loan or invest in capital, for that even know the public compnay may invest in capital or give a loans to the firm.
All the above are subject to compliance of Companies Act 1956
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