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Sec 464

01 January 2018

Under this section it is nowhere mentioned that an association or partnership formed in contravention of sub section (1) is considered
illegal.
But such associations and partnerships are called illegal association. Is this correct.
If so, are the colletral aggrements entered into by such associations tainted with illegality

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7 Replies

Divakar (Student CA Final ) (11857 Points)
Replied 01 January 2018

Section 464 prescribed maximum no of person in case of partnership or association... i. e 100...if exceeded by 100 u hv to form a company

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Sripriya Parthasarathy (24 Points)
Replied 01 January 2018

My doubt is whether such association formed in contravention of the sub section 1 can be called illegal association

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Divakar (Student CA Final ) (11857 Points)
Replied 01 January 2018

Yes... Called illegal association and every person personally liable for fine uoto Rs. 100000....violation of law is illegal

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Sripriya Parthasarathy (24 Points)
Replied 01 January 2018

thank you

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Pardeep Garg (CA-Final Student) (801 Points)
Replied 04 January 2018

@ Divakar, but the prescribed limit is 50 now ,not 100.

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Divakar (Student CA Final ) (11857 Points)
Replied 04 January 2018

@ Pradeep u r right... As per Rule 10 of companies miscellaneous rules current limits prescribed is 50....section prescribed maximum limit 100....i just skip in mind