Whether a partnership firm can become a shareholder in a company( Private and Public LTD.) ? If Yes in what capacity? Pls give replies with suitable section reference.
Whether a partnership firm can become a shareholder in a company( Private and Public LTD.) ? If Yes in what capacity? Pls give replies with suitable section reference.
No a partnership firm cannot be a shareholder in either Pvt or Public co.
A partnership firm is not a legal person and as such it can not, in its own name, become the member of the company. However, its partners may become joint shareholders of the company and their name be entered in the register of members.
However, it can become member of section 25 company.
Ref :- Circular 4/72 dated 9/3/1972
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