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maximum no of members in case of banking

Rahul Kakaria (student) (99 Points)

11 April 2010

Pls tell me the maximum no of partners in case of parnership firm and banking ?

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» Restrictions on the number of persons

The maximum number of members that can exist in partnership is 10 in case of a firm carrying on banking business and 20 in case of any other business.

This restriction is placed by the companies act and not the partnership act.

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CA VISHAL RANA,CS,B.Com,AMFI (Chartered Accountant in Whole Time Practice) (4354 Points)
Replied 11 April 2010

maximun no. of members in case of Banking is 10 and in other case is20

SUDHIR & PRADEEP JI (CA FINAL+LLB + DISA) (2299 Points)
Replied 11 April 2010

agrred with both

CA Himanshu Bansal (Risk Manager) (2345 Points)
Replied 12 April 2010

For Banking - Max. 10.

Others - Max. 20.

CA Devender Chauhan (Group Financial Accountant) (1526 Points)
Replied 12 April 2010

Originally posted by : Himanshu Bansal
	For Banking - Max. 10. Others - Max. 20.

agree

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Sushil (CA Final Student) (2571 Points)
Replied 12 April 2010

Sec.11 of Companies Act, 1956:- Prohibition of associations and partnerships exceeding certain number

(1) No company, association or partnership consisting of more than ten persons shall be formed for the purpose of carrying on the business of banking, unless it is registered as a company under this Act, or is formed in pursuance of some other Indian Law.

(2) No company, association or partnership consisting of more than twenty persons shall be formed for the purpose of carrying on any other business that has for its object the acquisition of gain by the company, association or partnership, or by the individual members thereof, unless it is registered as a company under this Act, or is formed in pursuance of some other Indian law.

(3) This section shall not apply to a joint family as such carrying on a business; and where a business is carried on by two or more " joint families, in computing the number of persons for the purposes of sub-sections (1) and (2), minor members of such families shall be excluded.

(4) Every member of a company, association or partnership carrying on business in contravention of this section shall be personally liable for all liabilities incurred in such business.

(5) Every person who is a member of a company, association or partnership formed in contravention of this section shall be punishable with fine which may extend to ¹[ten thousand rupees].

1. Subs. by Act 53 of 2000, sec. 5, for "one thousand rupees" (w.e.f. 13-12-2000).