i. Can M/s ABC buy the shares of the company? ii. Can profits of M/s. ABC be invested in shares held in the names

Question

Study the following case and express your opinion:

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

i. Can M/s ABC buy the shares of the company?

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

iii. Are the doctors eligible to invest in shares of the company?

Answer 1

i. Yes M/s ABC can buy the shares of the company.

ii. They can invest profit of M/s ABC in the names of Dr. A or Dr. B or Dr.C.

iii. Yes, doctors are eligible to invest in shares of the company.