Maharashtra State BoardHSC Commerce 11th
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M/s. ABC is a partnership firm owned by Dr. A. Dr. B and Dr. C. The doctors want to invest the profits of ABC in the shares of a company: - Secretarial Practice

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Short Note

Study the following case/situation and express your opinion.

M/s. ABC is a partnership firm owned by Dr. A. Dr. B and Dr. C. The doctors want to invest the profits of ABC in the shares of a company:

(a) Can M/s ABC buy the shares of the company?

(b) Can profits of M/s. ABC be invested in shares held in the names of Dr. A or Dr. B or. Dr. C?

(c) Are the doctors eligible to invest in shares of the company?

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Solution

(a) M/s. ABC in its own name cannot buy the shares of a company because it not a registered entity.

(b) Profits of M/s ABC partnership firm can be invested in the shares of a company in the name of Dr. A or Dr. B or Dr. C individually because a partnership firm can hold shares of a company in the individual names of partners.

(c) The doctors individually are eligible to invest their profits in the shares of the company.

Concept: Eligibility of Membership
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APPEARS IN

Balbharati Secretarial Practice 11th Standard HSC Maharashtra State Board
Chapter 5 Members of a company
Exercise Q.3 | Q 2 | Page 75
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