Question

Two Hindu undivided families- one consisting of 11 major members and 2 minor members, and other one consisting of 6 major members and 2 minor members amalgamate their business. Can contracts, entered into by the amalgamated in be enforced by the firm?

Answer 1

Solution: Section to which the. given problem relates: Section 11 of the Companies Act, 1956.
Decision: Yes
Reason: The amalgamated firm is not an illegal association because such firm consists of 17 major members with does not exceed the statutory limit of 20 members.