Companies Act 2014 section 1435

Prohibition of partnerships with more than 20 members

Section 1435 sets out the general prohibition on forming a business partnership or association with more than 20 members, and specifies the exceptions to this rule.

• Any company, association, or partnership of more than 20 persons formed for profit must be registered as a company under the Companies Act 2014 or formed under another statute, unless it falls within a recognised exemption.
• Exempt partnerships include accountancy firms (where every partner is a statutory auditor), solicitors' firms (where every partner is a solicitor), thoroughbred horse breeding limited partnerships, and investment and loan finance limited partnerships (capped at 50 members).
• The Minister may grant further exemptions by order for other types of partnership, but only after consulting the Company Law Review Group and being satisfied that the public interest will not be adversely affected.
• Investment limited partnerships within the meaning of the Investment Limited Partnerships Act 1994 are entirely outside the scope of this prohibition.