Membership in a company
This query is : Resolved
10 December 2010
Dear Friends
A partnership firm is not entititled to be a member of a company since it is not a legal person. The DCA has already issued
a clarification to that effect. Is there
any other way by which a partnership firm
can subscribe for the shares in a company.
Is there any case law in support of this.
Santhosh
A partnership firm is not entititled to be a member of a company since it is not a legal person. The DCA has already issued
a clarification to that effect. Is there
any other way by which a partnership firm
can subscribe for the shares in a company.
Is there any case law in support of this.
Santhosh
11 December 2010
Dear Friend
Section 41(2) provides that only a person can be member of a company who has agreed in writing to become a member and whose name is entered in the register of members.
As per Department’s Circular No. 4/72, dated 9-7-1972, it has been clarified that “a firm” not being a person, can not be registered as a member of a company.
I think a partnership can not be a member of the company.
Regards
CS Ajay Mishra
Section 41(2) provides that only a person can be member of a company who has agreed in writing to become a member and whose name is entered in the register of members.
As per Department’s Circular No. 4/72, dated 9-7-1972, it has been clarified that “a firm” not being a person, can not be registered as a member of a company.
I think a partnership can not be a member of the company.
Regards
CS Ajay Mishra
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