Company as partner in partnership firm

Hi All,

 

 Pls clarify can a ltd. company become partner in partnership merely on the basis of Board resolution.

further is there any limit for amount to be invested or ulimited investment is possible.

Replies (4)

yes partnership is allowed no issues.. 

section 372A not applicable to such investments..

Check MOA for related objects, if allowed in MOA to form partnership with the purpose of carrying on any business as specified in MOA, then its OK,. 

Thats fine but is there any limit, further if a company is investing money from time to time in partnership firm and withdrawing it as per convinience is it ok........how this should be complied in secretarial records

yeah no limit at all.. but you are raising a valid point.. though there are checks like disclosure, etc if funds are diverted to firms where directors/etc are interested, there seems no restriction if funds invested in an independant firm. It is more of a propriety issue which you are raising, and if at all there is something wrong, the law gives power to auditor under section 227/CARO to make adverse comments, if funds not utilised properly.. as regards secretarial records, maintenace of a simple register w.r.t investment made and reference to necessary board resolutions should be sufficient.

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