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Section 464 of the Companies Act, 2013 empowers the Central Government to prescribe the maximum number of partners in a firm, subject to a statutory ceiling. What is that ceiling figure stated in Section 464 itself?
Answer & Solution
Correct answer: A.
1. Section 464 of the Companies Act, 2013 caps the figure the Central Government may notify.
2. The Act itself fixes the upper limit at one hundred partners.
3. Under that cap, the Government has actually notified 50 via Rule 10 of the Companies (Miscellaneous) Rules, 2014.
4. So the Act ceiling = 100; the operative notified limit = 50.
_Source: ICSI CS Executive Paper 3 (Setting up of Business Entities and Closure) — Lesson 1: Choice of Business Organisation, pp. 2-11._
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