Directors & Firm
This query is : Resolved
09 February 2010
Respected All,
XYZ PVT LTD is a company with directors X,Y and Z.
The directors decide to form a partnership firm in which X,Y,Z, XYZ PVT LTD and SKK PVT LTD will be partners.
The capital contribution by the partners is:
X - 5%
Y - 5%
Z - 5%
XYZ P LTD- 45%
SKK P LTD- 40%
The profit sharing ratio will 1/5 th each.
Is there any restriction or compliance regarding the formation of firm?
Regards
Jyoti
XYZ PVT LTD is a company with directors X,Y and Z.
The directors decide to form a partnership firm in which X,Y,Z, XYZ PVT LTD and SKK PVT LTD will be partners.
The capital contribution by the partners is:
X - 5%
Y - 5%
Z - 5%
XYZ P LTD- 45%
SKK P LTD- 40%
The profit sharing ratio will 1/5 th each.
Is there any restriction or compliance regarding the formation of firm?
Regards
Jyoti
10 February 2010
There is no restriction under the Indian Partnership Act Please examine the Articles of Association of the companies involved for any restrictions imposed in which case u will have to amend the Articles to suit the purpose.
10 February 2010
Thank you for the reply.
What are the compliances in this case as the directors are forming the firm with the company as one of the partners and diverting the funds of the company in the firm.
What are the compliances in this case as the directors are forming the firm with the company as one of the partners and diverting the funds of the company in the firm.
23 February 2010
as per my knowledge,
first check articles of both the companies whether they allow the company to be member of partnership firm
secondly if your company and such firm is entering into any contract then provisions of section 297,298,300,301,and AS 18 has to be followed, mind well if your company has paid up capital more than 1 Cr then u need to go for central govt approval for such contract
first check articles of both the companies whether they allow the company to be member of partnership firm
secondly if your company and such firm is entering into any contract then provisions of section 297,298,300,301,and AS 18 has to be followed, mind well if your company has paid up capital more than 1 Cr then u need to go for central govt approval for such contract
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- TDS U/S. 194NF
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Applicable TDS rate for sale of property in Nov 2024
- Capital gain consideration
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
