Which Act prescribes the maximum numbers of partners in a partnership firm?
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Shift 25/05/2023 8:30 AM - 10:30 AM
Correct Answer
Detailed Explanation
NOTE* AS PER NTA THE ANSWER TO THIS QUESTION IS (3)
The Companies Act, 2013 (specifically Section 464 read with Rule 10 of the Companies (Miscellaneous) Rules, 2014) prescribes the maximum number of partners in a partnership firm.
Explanation:
Key Legal Provision:
The Indian Partnership Act, 1932 governs partnership firms but does not specify a maximum limit on partners.
The Companies Act, 2013 (Section 464) mandates that no association/partnership can have more than 50 members unless registered as a company (e.g., LLP, private company).
Rule 10 of the Companies (Miscellaneous) Rules, 2014 explicitly caps the number of partners at 50.
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