Section 464 Prohibition of association or partnership of persons exceeding certain number
- Chapter
- XXIX · Miscellaneous
464. Prohibition of association or partnership of persons exceeding certain number.—
(1) No association or partnership consisting of more than such number of persons as may be prescribed shall be formed for the purpose of carrying on any business that has for its object the acquisition of gain by the association or partnership or by the individual members thereof, unless it is registered as a company under this Act or is formed under any other law for the time being in force:
Provided that the number of persons which may be prescribed under this sub-section shall not exceed one hundred.
(2) Nothing in sub-section (1) shall apply to—
(a) a Hindu undivided family carrying on any business; or
(b) an association or partnership, if it is formed by professionals who are governed by special Acts.
(3) Every memberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records. of an association or partnership carrying on business in contravention of sub-
section (1) shall be punishable with fine which may extend to one lakh rupees and shall also be personally
liable for all liabilities incurred in such business.