Google had a 100-links-per-page Webmaster guideline that no longer exists. Matt Cutts, Head of Search Spam has released a new video explaining why Google doesn't have the guideline now.
Cutts said that the guideline was dropped before 2008 but webmasters and SEOs still think more than 100 links on a page may invite a penalty. However, the truth is that it won't lead to penalty. Citing an example of Techmeme, Cutts said that the site has thousand of links on its home page but Google hasn't penalized it.
If a website looks spammy and has too many links on one page, Google has the right to take an action against the site.
In the video, Matt also explained that the PageRank is divided by the number of links present on the page. For example, if page A links to page B, C, and D, the PageRank will be split into three. Therefore, if there are hundreds of links to the page, PageRank will be divided by hundreds.The 100-Links-Per-Page Guideline Doesn't Exists but Google Can Take Action if the Site is Too Spammy: Matt Cutts,