Practicing Success
Which Act prescribes the maximum number of partners in a partnership firm? |
Indian Contract Act 1872 Indian Partnership Act 1932 Indian Companies Act 2013 Negotiable Instruments Act 1882 |
Indian Companies Act 2013 |
The correct answer is Option 3- Indian Companies Act 2013. 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. |