Can a Partnership firm be registered member of any company?
Partnership firm as registered member of company
prakash (Company Secretary) (1352 Points)
07 April 2012
Mohammed
(CS, Mcom, LLB)
(852 Points)
Replied 07 April 2012
Partnership firm cant be a member of a Company.
The membership has to be in the name of the partners of the firm.
There is a clarification from the Department of Company Affairs stating that "a firm, not being a person cannot be registered as a member of the Company except when the Company is licences under Sec 25 of the Companies Act, 1956.
Hope it clarifies your doubt
Chandan Kumar
(Strategy Analyst)
(384 Points)
Replied 07 April 2012
Section 41 of the companies act 1956, defines a member as a person who has signed the memorandum of association and every other person who agrees in writing to become a member and whose name is entered in the register of members.
A partnership firm, being not a person in the eyes of law, cannot be a member of a company. However, a firm can purchase shares of a company in the individual names of its partners as joint shareholder.
Exception - Section 25 company
Live Course on Invoice Management System (IMS) - 2nd Batch(With Recording)
CAclubindia
