Can co-operative society become a partner?
Page no : 2
Sivaraman A R
(.)
(1040 Points)
Replied 24 February 2017
Can a society registered under societies registration act (an aop) be a partner in a normal partnership(not llp)? In an LLP, only individual and body corporate can become partners. Society cannot become patner in LLP. What about normal partnership ?
Devang
(Tax)
(27 Points)
Replied 11 May 2020
Well there is neither an Express bar nor an Express permission. The cooperative society laws doesn't permit the said society to conduct any business, hence, it is crystal clear that the said society cannot enter into partnerships as it will tantamount carrying business however, the only leeway could be that it becomes a partner like a 'sleeping partner' but burden will be on the said society to prove that it is not carrying out any business.
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