Partnership
2 years ago
Our partner ship firm registered and it is 11 year old . Now 1 partner want to exit without adding new partner . Please tell what will be the impact of this action ?
Ayantika Mondal @ Prime Legal
Responded 2 years ago
A.Hi,
Since the partnership is registered, it would make the ensuing processes a little more niche. It is not a mandate for two-partner firms to dissolve when any of them leaves. However, if you want to continue as a partnership firm only then you shall have to approach the registrar's office and post your query.
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Since the partnership is registered, it would make the ensuing processes a little more niche. It is not a mandate for two-partner firms to dissolve when any of them leaves. However, if you want to continue as a partnership firm only then you shall have to approach the registrar's office and post your query.
If you find my answer helpful then kindly rate me.
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A.Hi,
The usual practice is the dissolution of the firm after one of the partners has left in the case of a two-person partnership firm. However, if you have had any clauses regarding partner withdrawal then it would be convenient for you to avoid the resolution of the firm. All the more since, your partnership is registered, it means that you will have to amend the changes when the new partner comes in.
If you find my answer helpful then kindly rate me.
The usual practice is the dissolution of the firm after one of the partners has left in the case of a two-person partnership firm. However, if you have had any clauses regarding partner withdrawal then it would be convenient for you to avoid the resolution of the firm. All the more since, your partnership is registered, it means that you will have to amend the changes when the new partner comes in.
If you find my answer helpful then kindly rate me.
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A.If there are only two partners then you will have to dissolve, I mean your firm will automatically get dissolved as minimum two partners are required to make a partnership firm.
If you have more than 2 partners then nothing to worry about. You got to find out the payable (the liabilities towars to the outgoing partner) for the outgoing partner and pay him the money and you keep running the show. as usual. Later on if you wish you can involve others as partners.
If you have more than 2 partners then nothing to worry about. You got to find out the payable (the liabilities towars to the outgoing partner) for the outgoing partner and pay him the money and you keep running the show. as usual. Later on if you wish you can involve others as partners.
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Advocate Sinjari Bandyopadhyaya
Responded 2 years ago
A.Retirement of a partner from a firm is not equivalent to dissolution of the firm, though if one partner retires in a partnership consisting of two partners, it shall amount to dissolution of the firm. But when a partner retires from a partnership consisting of more than two partners, the partnership is not automatically dissolved. It is necessary to know the number of Partners herein and it is required to peruse the Terms and conditions specified in that Partnership Deed to give opinion in this regard. At least two partners are necessary to continue the Partnership Business,if one partner will retire without adding new Partner,then it becomes Proprietorship Firm .
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