Maximum number 50 or 100 ?

Co Act 2013 45666 views 13 replies

Anil

1638 Points Joined October 2007

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)

Guest

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

1638 Points Joined October 2007

Thank you Manish sir for the clarification.

AASAN HAI

STUDENT

76 Points Joined April 2012

thanks manish sir , for clarification

Mayank Bhatnagar

CA-CS FINAL

31 Points Joined June 2015

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

1056 Points Joined August 2011

Good question Mr. Anil. Th

Sai Manikanta Pedamallu

Founder Faculty @ Global Fin X

22 Points Joined March 2014

There is no limit on special governed professionals.

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

Mohammed janiaba

student

2 Points Joined April 2016

What if members reduced to 30

shahyar husain

1240 Points Joined November 2020

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

Indira Priyadarsini Kota

Practice

590 Points Joined 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

8133 Points Joined October 2017

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"