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CMA Intermediate · Business Laws and Ethics · Indian Partnership Act, 1932

Four friends from Jaipur wish to start a firm and apply for registration under Section 58. Which of the following is correct about the statement and firm name?

The statement must be signed by all the partners or their specially authorised agents, and the firm name cannot contain words such as Royal, Imperial or King, or words implying Government patronage, unless the State Government consents by written order.

  1. AThe statement must be signed by all the partners or by their agents specially authorised, and the firm name cannot contain words like "Royal" or "Imperial" unless the State Government consents in writingCorrect
  2. BThe statement may be signed by any one partner, and the firm name may freely contain the word "King"
  3. CThe statement must be sent only to the Registrar of the State capital, and the firm name must contain the word "Partners"
  4. DThe statement need not state the duration of the firm, and the firm name may include words implying Government patronage without consent

Explanation

Section 58 requires the statement to be signed by all partners or by agents specially authorised, and bars words such as Crown, Emperor, King, Queen, Royal or Imperial or words implying Government sanction unless the State Government consents in writing. The other options contradict this; the statement must also state the duration and goes to the Registrar of the area where a place of business is situated.

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