The Maximum Limit of Partners in a Firm has been Specified by
By BYJU'S Exam Prep
Updated on: November 9th, 2023
The maximum limit of partners in a firm has been specified by the Indian Partnership Act, 1932. The maximum number of people prescribed for a partnership firm is 50. A partnership is “the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all,” according to the Indian Partnership Act, 1932. By staying true to one another, the partners can manage the company’s operations.
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Maximum Number of Partners in Partnership Firm
“The Central Government is given the authority to specify the maximum number of partners in a firm under Section 464 of the Companies Act 2013, but the number of partners so specified cannot exceed 50. According to Rule 10 of the 2014 Companies (Miscellaneous) Rules, the maximum number of partners in a firm is 50, as set forth by the Central Government. Thus, a partnership firm is effectively limited to having no more than 50 members “.
- By staying true to one another, the Partners will manage the firm’s operations to the greatest possible degree of mutual benefit.
- They must be responsible to one another and give any other partners or their legal representatives, full disclosure of all firm-related information.
In India, the Indian Partnership Act 1932, was passed. A lawsuit for the dissolution of the partnership firm may be brought against the managing partner under section 44(d) of the Act.
Summary:
The Maximum Limit of Partners in a Firm has been Specified by
The Indian Partnership Act of 1932 specified a limit of partners for a company. 50 people is the maximum allowed staff size for a partnership firm. According to the Indian Partnership Act of 1932, a partnership is “the relationship between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.”
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