What i meant as investment was that a partner can bring his share of capital by way of his shares. In this way shares would appear in the firm's balance sheet as investments.

Hi Ms.Shridhi....

If the payment has been made by the firm and shares are alloted to partners in that the issuing company has made deafault in allotment of shares because the subscriptttion ammount received by the company from firm. A company is not authorised to take any money against allotment for which, it is not eligible.

In that case the company will refund the subscriptttion money to firm. However, it can be mutually shortout by partner of the firms and company.

Regards

It cannot be a member as it has no "SEPERATE LEGAL STATUS" in eyes of law, in case if it's a LLP then it can become a member.

No, Parternership firm can not be shareholder of the company because a firm is not considered  an artificial person according to law.

A Partnership firm can not be a member in a company as it is not a separate legal entity. However partners can hold shares as a joint holders 

Dear mamber 

i want to know about following 

1) improrter exporter code (IEC) what the procceder to got this code.

2) How can got ISO certifaction client deal in computer course business

any member haveing aknowledge about that work please advice me as soon as possbile.

Thanks Regard

Rishi Shankar Kumar

Email id:- rishi_sh_kumar512 @ yahoo.com

contact no:- 9015625703 

Dear members

i want to know about following 

1) what the process to got Improter exporter code(IEC).

2) WHAT THE PROCESS ISO REGISTRATION client deal in computer business.

Please reply me as soon as possbile.

Regard

Rishi Shankar

Email id: rishi_sh_kumar512 @ yahoo.com

Phone: 9015625703

Partnership firm can become a shareholder in a company.

Dear Anil,

Please check dear, a partnershipfirm can not become shareholder of a company becasue it is not a legal person.

Regards

Originally posted by : Ajay Mishra
	Dear Anil,   Please check dear, a partnershipfirm can not become shareholder of a company becasue it is not a legal person.       Regards

Agree with Ajay Jee 100%

Thanks all dear members for your replies.

I agree that firm cant be a member of a company. And i hv found that It is mentioned in Department of Company Affairs (DCA) circular no. 4/72 dt, 9.2.1972.

But i am unable to get a copy of this circular. Anybody pls help me in getting a copy of this cirular.

Thanks....

Hi Shridhi,

The circular copy is not available with site but the details of the same is given below:

Firm is not a person or a legal entity distinct from the partners composing it. It is merely a collective name of the individuals who are members of the partnership. It is neither a legal entity nor is it a person. The Companies Act does not contemplate the registration of the name of a firm as the holder of shares of a company, but only individuals or other legal entities. In Sheodayal Khemka's case Page J observed: "A partnership under section 239, of the Contract Act, is a relationship which subsists between persons; but a firm is not a person; it is not an entity; it is merely a collective name of the individuals who are members of the partnership. It is neither a legal entity, nor is it a person". The Department of Company Affairs has in its Circular No. 4/72, dated 9-3-1972 expressed similar view stating that a firm, not being a person, cannot be registered as a member of a company except where the company is licensed under section 25. In another Circular No. 5/75 (8/18/75-CL-V), dated 31-3-1975 issued under section 187C of the Act the Department has expressed similar view. 

In the latter, the Department stated: "A partnership firm is not a person capable of being a member within the meaning of section 41 of the Companies Act, 1956 and since a partnership is not a legal entity by itself but only a compendious way of describing the partners constituting the firm, it is necessary that the names of all the members of the partnership firm should be entered in the Register of Members in order that the right of the partnership as a whole to the shares in question may prevail. The holding of shares by only one or more partners on behalf of other partners of a firm should not, therefore, ordinarily arise. However, where in a given case, the name or names, of only one or some of the partners is entered in the Register of Members while the intention is that the partnership as a whole should have the right of membership in respect of the shares in question, it is obviously necessary for such partners who hold shares not only for themselves but for the benefit of all partners constituting the firm whose names are not entered in the Register of Members, to comply with the rules under section 187C." 

A partnership firm can't be a shreholder in a company because it is not a artificial person, but their partner can be shreholder in a company.

A partnership firm can't be a shreholder in a company because it is not a artificial person, but their partner can be shreholder in a company.

Copy of circular No.4/72 is reproduced below:

Member ‑ Whether firm can be registered as member of a company

A firm, not being a person, cannot be registered as a member of a company except where the company is licensed under section 25. Companies which have firms registered as shareholders should be advised to take steps to rectify the position within a specified time. In case the irregularity persists, despite a warning, necessary action can be taken under section 150(2).

Circular : No. 4/72, dated 9‑3‑1972