Partnership firm can invest in a company

By | July 24, 2015

Partnership firm can invest in a company

Query: We have a query that can a partnership firm invests in equity shares of a company. If yes, then what are the relevant provisions?

Answer: Partnership firm cannot hold shares in its name as firm is not an entity or artificial person. However Partners of the firm can hold shares in the company on the behalf of firm.

Further Section 89 of the Companies Act 2013 shall be applicable in case partners of the firm hold shares in the Company as beneficial holder.

Leave a Reply