Which Act prescribes the maximum number of partners in a partnership firm?
Answer & explanation
Correct answer: option 3
The correct answer is Option 3- Indian Companies Act, 2013.
Indian Companies Act, 2013 prescribes the maximum number of partners in a partnership firm.
In order to form partnership, there should be at least two persons coming together for a common goal. In other words, the minimum number of partners in a firm can be two. There is however, a limit on their maximum number. By virtue of Section 464 of the Companies Act 2013, the Central Government is empowered to prescribe maximum number of partners in a firm but the number of partners can not be more than 100. The Central government has prescribed the maximum number of partners in a firm to be 50.