ABC, a partnership firm, subscribes for shares of XYZ Ltd. The company rejects the application. Can it do so?
12 Replies
Hareesh H Sharma
(Cleared IPCC..now article)
(894 Points)
Replied 03 December 2009
I think a partnership firm cannot become a member of a company whereas the partners can become jointholders of shares
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 03 December 2009
Rejection by company is correct.
CS.Bhagwati charan
(company secretary)
(52 Points)
Replied 04 December 2009
If Article of association of company not allowed partnership firm become a member of company than rejection is valid.
RAMESH POLINENI
(ca)
(352 Points)
Replied 04 December 2009
A partnership firm cannot become a member of company because i doesnt have a seperate legal entity capacity. the company treatment is correct
CA Trinath Galla
(student)
(3130 Points)
Replied 04 December 2009
| Originally posted by :RAMESH | ||
| " | A partnership firm cannot become a member of company because i doesnt have a seperate legal entity capacity. the company treatment is correct | " |
Pranjal
(Article)
(52 Points)
Replied 04 December 2009
partnership firm cannot become the member of the company so the rejection by the company is valid.
SOURABH GUPTA
(CS)
(100 Points)
Replied 04 December 2009
I THINK THAT COMPANY REJECTION IS WRONG.
CAN ANY BODY CITE/QUOTE ANY SECTION/PROVISION ETC. IN WHICH IT IS REFERED THAT A PARTNERSHIP FIRM CAN'T BECOME A MEMBER OF COMPANY.
AS FAR AS MY OPINION PART. FIRM CAN BECOME MEMBER OF COMPANY
meenu
(cs)
(416 Points)
Replied 07 December 2009
Sourabh,
Jusify your answer pls.
Best Regards,
Meenu
karn
(trainee)
(172 Points)
Replied 08 December 2009
Dear all,
plz refer to the membership section in companies act, the identity of a firm is not a sole as of a company and hence its name cant be added into the register of members also it cant subscribe shares in its own name.
this i guess is self explanatory..
regards..
Recent Topics
- Profit or Loss on Sale of Assets Accounting treatm
- Clarification on RCM on Rent Payment for QRMP Deal
- Reclaimed itc in gstr9
- Gamification in Accounting Software: Boosting Enga
- I want to knw Hsn code and gst rate of resin produ
- Schedule FA clarification
- Income tax on freelance income from crypto
- ITC temporary reversal and reclaim
- Query on Transactions
- Two GSTN under different PAN in same address
Related Threads
CAclubindia
