Dissolution of the firm on the non performance of one partner
19-Oct-2023 (In Documentation Law)
in a partner ship firm of 2 partners,(Partnerhship deed registered), one partner not performing and not ready to sign dissolution , how to dissolve partnership on non performing the duties
Normally Dissolution of partnership is either with the consent of all the partners or as per the contract between the partners , so your matter needs thorough review on its merit to formulate any opinion.
You should file a signed letter of notice to registrar of firms, in area where you have registered your firm, further you shall contact a good Advocate for distribution of remaining assets and capital.
A partnership firm is the result of a contract entered between the partners at the time of commencement of the partnership. It is statutory fiction which is formed by individuals who have agreed to share profits between themselves and the firm has no separate existence different from its partners. All partners are agents of the firm and are therefore bound to perform their duties to the greatest common advantage of all. Apart from this the general duties of partners also include being just and faithful to the other, rendering of true accounts and full information (Section 9 IPA). A partnership is not compulsorily registrable, yet if it is not registered the partnership deed cannot be used as evidence in court (Section 49 Registration Act). Further, if their is any wilful or persistent breach by a partner or the conduct of a partner is such as to prejudicially affect the carrying on the business, any partner may sue in the court of law for dissolution of the partnership firm (Section 44). Thus, there is no such need to get a signature of the other partner to dissolve the partnership firm and the same may be done by either a suit in court or through the procedure given under the contract.
Partnership firm can be dissolved in many ways, one it is dissolved automatically if the tenure of partnership is completed or through the civil court. You should visit a lawyer from Lawrato network and put up all the facts so that the lawyer can advise you properly and proceed as per his advice. You can contact me too through Lawrato
Dissolution of the firm and its effects and consequences are dealt or legislated in various sections starting from section 39 to 55 incorporated in the chapter VI and partly section 72 incorporated in chapter VIII
Dissolution of partnerships refers to the termination of the partnership relationship of one partner with other partners and the firm whereas the dissolution of partnership means the end of the partnership business. If an existing partner dies, retires or is unable to pay the debt then other partners can purchase the share of the outgoing partner and continue the business under the same name.
Dissolution of partnerships refers to the termination of the partnership relationship of one partner with other partners and the firm whereas the dissolution of partnership means the end of the partnership business. If an existing partner dies, retires or is unable to pay the debt then other partners can purchase the share of the outgoing partner and continue the business under the same name.
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