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ABC, a partnership firm, subscribes for shares of XYZ Ltd. The company rejects the application. Can it do so?

Replies (12)

 I think a partnership firm cannot become a member of a company whereas the partners can become jointholders of shares

Rejection by company is correct.

100% legitimate.

If  Article of association of company not allowed partnership firm become a member of company than rejection is valid.

100% correct.

A partnership firm cannot become a member of company because i doesnt have a seperate legal entity capacity. the company treatment is correct

Originally posted by :RAMESH
" A partnership firm cannot become a member of company because i doesnt have a seperate legal entity capacity. the company treatment is correct "

partnership firm cannot become the member of the company so the rejection by the company is valid.

 trinath is Right.

I THINK THAT COMPANY REJECTION IS WRONG.

CAN ANY BODY CITE/QUOTE ANY SECTION/PROVISION ETC.  IN WHICH IT IS REFERED THAT A PARTNERSHIP FIRM CAN'T BECOME A MEMBER OF COMPANY.

 

AS FAR AS MY OPINION PART. FIRM CAN BECOME MEMBER OF COMPANY

 

Sourabh,

Jusify your answer pls.

 

Best Regards,

Meenu

Dear all,

plz refer to the membership section in companies act, the identity of a firm is not a sole as of a company and hence its name cant be added into the register of members also it cant subscribe shares in its own name.

this i guess is self explanatory..

regards..


CCI Pro

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