banner_ad

Please answer this.

Others 1297 views 3 replies
User Avatar

CA Final
814 Points Posted on 25 January 2008
Can a Company be a partner in a partnership firm? If so, how can the creditors of the firm proceed against the company for the recovery of their dues in case of dissolution of the firm, as a company has limited liability and a firm has unlimited liability.Also, what will be the impact on the company's own creditors and shareholders?
Reply Share Follow
On 25 January 2008 at 09:00 Report
Replies (3)
User Avatar

Assistant Auditor
189 Points Posted on 05 February 2008
yes a company can become a partner in a firm.. the company's liability towards the creditors of the firm will be unlimited, as per provisions of partnership act. however, its liabilty towards its own creditors will be limited as per companies act.
Reply
On 05 February 2008 at 20:10
User Avatar

CA Final
814 Points Posted on 06 February 2008
Thank You swapnil ji. But can you tell, from what source will a company payoff the debts of the firm? Can it pay out of its capital and is that legally allowed?
Reply
On 06 February 2008 at 11:19
User Avatar

Assistant Auditor
189 Points Posted on 08 February 2008
the company cannot pay off the debts of the firm out of its own capital... the debts will have to be paid from the capital that has been introduced in to the partnership firm by the company along with the other partners.
Reply
On 08 February 2008 at 15:24


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topic

More recent discussions | Post

Related Topics
Loading

Latest Job Openings

View all
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details
Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details
Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details