YourCSGuide

Many people might be surprised to learn that the correct answer is actually "C" A Partnership firm can become a member only of a Section 8 company. Here's why: under Indian law, a partnership firm isn't recognized as a separate legal entity, so it generally can't hold shares in its own name. The shares would usually need to be held in the names of the individual partners instead. However, the Companies Act provides a specific exception for Section 8 companies, which are dedicated to charitable or non-profit purposes, allowing firms to become members directly.