change in constitution of partners
Perumal Prabhu
(Querist) 09 June 2009
This query is : Resolved
Sir/Madam
what are the steps that has to be followed when there is change in constitution of partners in a partnership firm
(Eg. A,B & D entered into partnership deed and formed a firm. after 2 yrs B&D retired and X, Y became new parters of the firm.)
Should the firm be reregistered again?
Please give your suggestions.
A V Vishal
(Expert) 09 June 2009
A deed of retirement of the outgoing partners along with a fresh partnership deed reconstituting the partnership must be executed.
However, from the facts of your case it seems that 2 out of 3 partners are exiting the firm. In such a case the partnership will become null and void legally, hence advise to enter into a partnership with x & y (incoming partners) before the retirement deed. You need to file 2 separate Form V with the registrar of Firms one for the incoming partners and the other for the outgoing partners. Fresh registration is not required since the registrar will make suitable entries in his records. The firm shall continue in its old name and in the same line of business.
Manish Singh
(Expert) 11 June 2009
please note that u must keep in mind the nature of the partnership. if it was at will then it shall be dissolved aftr exit of parners so u will have to form a new partnership.
