15 April 2009
As we all know a company being a juristic person can become a partner in a partnership firm, if it is authorised to do so by its objects.
But the liability of a partnership firm is unlimited on the other hand liability of a company is usually limited.
My Query
So if a limited company becomes member of a partnership firm then what would be the status of company’s liability in that Partnership Firm? Is there any decided case law etc.?
15 April 2009
please clear your concept, liability of members(shareholders) of a company is limited , not the liability of the company itself is limited.
a comapny entered as a partner in a firm has unlimited liability i.e all assest of the company (not of members of the company )can be used to pay off liability of the firm, if required.
CAclubindia
