Amended and updated notes on section 464 of Companies Act 2013. Detail discussion on provisions and rules related to prohibition of association or partnership of persons exceeding certain number.
Chapter XXIX (Sections 447–470) of the Companies Act, 2013 (CA 2013) deals with the provisions related to miscellaneous. Section 464 of CA 2013 provides for prohibition of association or partnership of persons exceeding certain number.
Recently, we have discussed in detail section 463 (Power of court to grant relief in certain cases) of CA 2013. Today, we learn the provisions of section 464 of the Companies Act 2013.
The provisions of section 464 are effective from 1st April, 2014. You may refer Notification No. S.O. 902(E) dated 27-03-2014. In this article, you will learn detail of the provisions of section 464 the Companies Act 2013 read with the Companies (Miscellaneous) Rules, 2014.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | XXIX |
| Chapter Name | Miscellaneous |
| Section No. | 464 |
| Section Name | Prohibition of association or partnership of persons exceeding certain number |
| Monthly Updated Edition | Company Law PDF |
Section 464 of Companies Act 2013: Prohibition of association or partnership of persons exceeding certain number
Section 464 shall come into force on 1st April, 2014 vide Notification No. S.O. 902(E) issued dated 27.03.2014.
(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 member 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.