Question

As per Section 464 of the Companies Act, 2013, the maximum prescribed number of partners in a firm is:

• A. 20
• B. 50
• C. 100
• D. 200

Hint:

Under Section 464 of the Companies Act, 2013: \[ \text{Maximum partners in a firm} = 20 \] (Except certain professional associations governed separately.)

Answer 1

The Correct Option is A

Concept: Section 464 of the Companies Act, 2013 places a restriction on the maximum number of persons who can form a partnership without registering as a company. According to the Act: \[ \text{The maximum number of partners allowed in a partnership firm is } 20. \] If the number exceeds this limit, the association must generally be registered under the Companies Act.

Step 1: Understand the legal provision.
Section 464 provides that:
• A partnership firm cannot have more than 20 partners.
• Beyond this limit, registration as a company becomes necessary. Thus: \[ \boxed{20} \]

Step 2: Analyze the remaining options.
50
This exceeds the prescribed legal limit. \[ \Rightarrow \text{Incorrect} \] 100
Not permitted for an ordinary partnership firm. \[ \Rightarrow \text{Incorrect} \] 200
Far beyond the maximum prescribed number. \[ \Rightarrow \text{Incorrect} \]

Step 3: Identify the correct option.
The correct maximum prescribed number is: \[ \boxed{20} \] Hence, the correct answer is: \[ \boxed{(A)} \]