In a partnership firm of a building construction one of the partner retired...? what are its effects...? what do the other partner need to do..? for further smooth running of the buisness...? the other partner need to make what all documents...?
shalini g n 05 March 2016
In a partnership firm of a building construction one of the partner retired...? what are its effects...? what do the other partner need to do..? for further smooth running of the buisness...? the other partner need to make what all documents...?
kavksatyanarayana (subregistrar/supdt.(retired)) 05 March 2016
In a partnership firm, if they are only 2 partners and one is retired, then the firm deemed to have been dissolvedd. so when one partner is ready to go out then you should add one incoming partner. then the firm cannot be dissolved. consult a local lawyer or income tax practioner for the purpose.
kavksatyanarayana (subregistrar/supdt.(retired)) 05 March 2016
In a partnership firm, if they are only 2 partners and one is retired, then the firm deemed to have been dissolvedd. so when one partner is ready to go out then you should add one incoming partner. then the firm cannot be dissolved. consult a local lawyer or income tax practioner for the purpose.
ROHIT SHARMA (Legal Advisor ) 05 March 2016
1. search on google ' parnership Act' . Read the index. refre to section where it is cited as what needs to be done when a partner retires. the accounts are setled. this is basic requirement.
shalini g n 08 March 2016
... would like to know what if the partnership firm is of 3 partners and if one of them retires can the rest 2 partners continue the buisness... what all doc they need to make or clear in such a scenario...?
ROHIT SHARMA (Legal Advisor ) 08 March 2016
1. You would just need the resignation legiven by such partner and the noting of his resignation recorded in the minutes of a meeeting of all the partners endorsing retirment of such partner and the rest documents of partnership can be retained as they are as no new partnership firm would need be needed to be formed. You will need another letter from such retiring partner that the accounts have been settled and whatever if due is paid to him. The partnership firm of two partners can carry on their activities.
shalini g n 08 March 2016
thanks for the reply...
shalini g n 08 March 2016
but let me put some more update on this.....
Yes initially it was a partnership firm of two person and one of the partner retired voluntarily and his a/c was settled on his retirement and there was addition of two more partner on his retirement hence the partnership firm continued and is existing /didn’t dissolve- the retiring partner has not given any authorization to act on his behalf to the acting partner, there were many documents jointly executed during his tenure..( …usually the partnership deed recites – jointly and severally liable for the acts / deed done by partners in good faith)
I need to check if there is a noting of his resignation recorded in the minutes of a meeting of all the partners endorsing his retirement And another letter showing that the accounts have been settled and whatever if due is paid to him.
now one of the client who is flat/shop purchaser of the flat/shop constructed by this firm would like to renew his agreement to sale…. which was then signed by the earlier two partners…
now my query is does the current partner have right to sign and execute the renewal agreement (as one of the partner is signatory to the earlier agreement ) will that be valid… ?
what doc. Does the retiring partner need to make for further smooth running of the business/ continuation of firm/ documentation in his absence…? Or….
What other option does the current partner have …? to execute the doc. In case of absence of retired partner… ? as the retired partner is unable to personally remain present on each and every current documentation of his earlier document/ executed by him during his tenure….
compliance 12 May 2016
Ms.Usha Kapoor (CEO) 16 August 2016
Dear Client,
IF only two partners are there in the partnership automatically gets dissolved. If more than 2 partners ARE THERE IF ONE PARTNER QUITS OR RETIRES TWO OPTIONS ARE OPEN TO THE REMAINING PARTNERS. eITHER DISSOLVE AND decide the accounts of ASSETS AND LIABILITIES OF EACH OF THE PAARTNERS. oR A buy/Sell agreement which at the time of forming the partnership by a partnership "Deeed itslef provides that in case one partner quits or retires after paying the retiting partners dues and clearing his liabilities by him or quits partnership according to a o price fixed by partners in advance they buy the ownership rights of the quitting partner and keep the partnership business afloat.t.Buy/Sell agreements are very popular in partnership business.
Ms.Usha Kapoor (CEO) 16 August 2016
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