Under which Section & Act, the Central Government is empowered to prescribe a maximum number of partners in a partnership firm?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Section 464 of the Companies Act 2013
The maximum number of partners is not fixed by the Partnership Act. Section 464 of the Companies Act, 2013 empowers the Central Government to prescribe it, with an upper limit of 100; the Government has prescribed 50. The 1932 Act is the Partnership Act, not a Companies Act.
NCERT (2026-27 edition): |