Subscribers to memorandum
This query is : Open
04 June 2015
Hi can any one suggest me on this:
We want to incorporate a pvt company with 2 individuals and a partnership firm (i.e., total 3). My queries are:
1. Can a firm be subscribers to memorandum.?
2. If a firm can't be a subscriber, can a power of attorney of firm can act as a subscriber to memorandum.?
Our intention is firm has to be in connection with membership.
Thank you in advance.
We want to incorporate a pvt company with 2 individuals and a partnership firm (i.e., total 3). My queries are:
1. Can a firm be subscribers to memorandum.?
2. If a firm can't be a subscriber, can a power of attorney of firm can act as a subscriber to memorandum.?
Our intention is firm has to be in connection with membership.
Thank you in advance.
04 June 2015
A partnership firm cannot be a member/subscriber/shareholder of a Company.
It means, Firm cannot buy shares in its name.
It means, Firm cannot buy shares in its name.
05 June 2015
Thanks for replying,
Rule 16(2)(g) of company incorporation rule is as below:
"if the body corporate is a limited liability partnership or partnership firm, certified true
copy of the resolution agreed to by all the partners specifying inter alia the authorization to
subscribe to the memorandum of association of the proposed company and to make
investment in the proposed company, the number of shares proposed to be subscribed in the
body corporate, and the name of the partner authorized to subscribe to the Memorandum."
Which can be interpreted as firm can also be a subscriber to memorandum.
Please revert with your openion
Rule 16(2)(g) of company incorporation rule is as below:
"if the body corporate is a limited liability partnership or partnership firm, certified true
copy of the resolution agreed to by all the partners specifying inter alia the authorization to
subscribe to the memorandum of association of the proposed company and to make
investment in the proposed company, the number of shares proposed to be subscribed in the
body corporate, and the name of the partner authorized to subscribe to the Memorandum."
Which can be interpreted as firm can also be a subscriber to memorandum.
Please revert with your openion
05 June 2015
Ravi sir,
You are correct. But a firm can only be a member in sec. 8 Companies i.e. Company with charitable objects. refer Se. 8 (3) of CA 2013.
I thought, in this question, you were referring to a normal Pvt. Ltd. Company with object to earn profits.
If you are referring to a Sec. 8 Company, definitely a firm can be a subscriber to MOA.
You are correct. But a firm can only be a member in sec. 8 Companies i.e. Company with charitable objects. refer Se. 8 (3) of CA 2013.
I thought, in this question, you were referring to a normal Pvt. Ltd. Company with object to earn profits.
If you are referring to a Sec. 8 Company, definitely a firm can be a subscriber to MOA.
09 June 2015
Chetan sir,
Now what i thought to do is
I will start a company and firm, in firm i will take one of my neighbour as partner.
1. Pass a resolution to hold shares on behalf of firm on name of neighbour
2. invest in the shares of the company on neighbour name
3. I will ensure that neighbour will get least PSR in the firm.
Then obviously the shares belongs to firm.
Please correct if there any wrong
Now what i thought to do is
I will start a company and firm, in firm i will take one of my neighbour as partner.
1. Pass a resolution to hold shares on behalf of firm on name of neighbour
2. invest in the shares of the company on neighbour name
3. I will ensure that neighbour will get least PSR in the firm.
Then obviously the shares belongs to firm.
Please correct if there any wrong
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