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Question
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?
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.
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