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Maximum number 50 or 100 ?

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Anil

1114 Points Posted on 08 March 2015

This question pertains to companies Act

Rule says:

An unincorporated company,association or partnership consisting of large number of persons has been declared illegal. Rule 10 of Companies( Miscellaneous) Rules, 2014 prescribes 50 persons in this regard.

Act says:

By virtue of section 464 of the Companies Act, 2013, no association or partnership consisting of more than 100 number of persons as may be prescribed shall be formed for the purpose of carrying on any business.

Question:

Rule says 50 number and Act says 100 as maximum number.

Please let me know 50 numbers limit is for what and 100 numbers limit is for what. They seem same to me. Hence the question.

Thanks.

Replies (13)

Quick Summary

Section 464 allows up to 100 persons but authorizes rules to prescribe a lower limit. Rules set the limit at 50 persons. Hence, current maximum for unincorporated associations is 50, while Act provides upper cap of 100.

Guest

Posted on 08 March 2015

464 says

"Provided that the number of persons which may be prescribed under this sub-section
shall not exceed one hundred." i.e. by rules limit can be prescribed, but whatever limit is prescribed it must not be greater than 100 (i.e. upto 100).

And, the limit prescribed is 50 as per rules.

Hence, current limit is 50.

Anil

1114 Points Posted on 08 March 2015

Thank you Manish sir for the clarification.

AASAN HAI

STUDENT

70 Points Posted on 04 January 2016

thanks manish sir , for clarification

Mayank Bhatnagar

CA-CS FINAL

32 Points Posted on 20 March 2016

What is the limit of partners in professions covered under special statute. Like in CA??

as it is given as an exclusion of sec 464.

CS Arjun Rajagopal

B.com ACS

738 Points Posted on 21 March 2016

Good question Mr. Anil. Th

Sai Manikanta Pedamallu

Founder Faculty @ Global Fin X

22 Points Posted on 22 December 2017

There is no limit on special governed professionals.

Even ICAI relesed an explanation regarding unlimited partners in CA partnership.

Mohammed janiaba

student

22 Points Posted on 29 May 2019

What if members reduced to 30

shahyar husain

1084 Points Posted on 05 December 2020

Can a person be a partner in more than one firm? Kindly clarify this query.

Indira Priyadarsini Kota

Practice

558 Points Posted on 05 January 2021

shahyar husain

A person can be a partner in more than one firm as long as the partnership deed of the firm in which he currently is a partner in does not have any restrictions.

Ritik Chopra

student

7648 Points Posted on 13 February 2021

The Central Government has prescribed maximum number of partners in a firm to be 50 vide Rule 10 of the Companies (Miscellaneous) Rules,2014. Thus, in effect, a partnership firm cannot have more than 50 members"