CA Suri Kota
(Assistant Manager @ EY)
(955 Points)
Replied 12 April 2016
I don't see any restrictions prescribed for any LLP to become a member or shareholder. Do u see any roadblocks to have this view, if so please let us know!!!
Mandar
(Associate)
(561 Points)
Replied 12 April 2016
Reference: Section 3 of Companies Act 2013 & Section 2(31) of Income Tax Act
Section 3 stipulates the conditions for formation of Company , wherein the number of person have been mentioned for different types of Company,
As per S.2(31) of Income Tax Act, 1961, unless the context otherwise requires, the term “person” includes:
(i) an individual,
(ii) a Hindu undivided family,
(iii) a company,
(iv) a firm,
(v) an association of persons or a body of individuals, whether incorporated or not,
(vi) a local authority, and
(vii) every artificial juridical person, not falling within any of the preceding sub-clauses.
Thus a LLP can become a member of a company
Vivek Bhasin
(GM (Accts and Admin))
(78 Points)
Replied 13 April 2016
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17848 Points)
Replied 14 April 2016
Yes LLP is entitled to become a members as it is a distinct corporate personality as Company.
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