Dissolution of a Partnership firm * Dissolution of a partnership means:-The act of ending of the old Partnership agreement and a reconstruction of the firm due to admission, retirement and death of a partner. It may or may not close the business. * Dissolution of a Partnership ‘firm’ means:-The firm close its business then the assets of the firm are sold and liabilities are paid off and remaining amount is distributed among the partners. *Cases of Dissolution of Partnership :- 1. In case of change in profit-sharing ratio of the exiting partners. 2. In case of admission of a new partner. 3. In case of retirement of a partner. 4. In case of expulsion of a partner. 5. In case of death of a partner. 6. In case of insolvency of a partner. 7. In case of expiry of the period of partnership. *Cases of Dissolution of Partnership firm:- *Without the intervention of the court: 1. When all partners agree to dissolve the firm.[sec.40] 2. Compulsory Dissolution [sec.41] · When all or one partner of the firm becomes insolvent. · When business of the firm becomes unlawful. 3. On the happening of any incidents:[sec.42] · Insolvency of a partner. · Fulfilment of the object for which the firm was formed. · Expiry of the period. 4. When any partner giving notice to other partners can dissolve the firm.[sec.43 ] · By order of the court [sec.44]: cases in which the court may order the dissolution of the partnership firm. 1. A partner has become of unsound mind. 2. When a partner unable to perform his duties as a partner. 3. When a partner is guilty of misconduct. 4. When a partner wilfully, commits violation of law of partnership agreement. 5. When a partner has transferred the whole of his interest in the firm to a third party. 6. The firm cannot be carried on except at a loss. 7. The dissolution is just and equitable due to some other reasons. by raghvendra srivastava
Posted on: Wed, 17 Jul 2013 14:08:12 +0000
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