Section 464 — Prohibition of associati on or partnership of persons exceeding certain number

(1) No
association or partnership consisting of more than such number of persons as may be prescribed shall be
formed for the purpose of carrying on any business that has for its object the acquisition of gain by the
association or partnership or by the individual members thereof, unless it is registered as a company under
this Act or is formed under any other law for the time being in force:
Provided that the number of persons which may be prescribed u nder this sub-section shall not exceed
one hundred.
(2) Nothing in sub-section (1) shall apply to—
(a) a Hindu undivided family carrying on any business; or
(b) an association or partnership, if it is formed by professionals who are governed by special Acts.
(3) Every member of an association or partnership carrying on business in contravention of sub-