Partner intro after a gap
kamal
(Querist) 20 October 2011
This query is : Resolved
Hi,
Please tell me, On the demise of one partner in a firm of only 2 partners, can a new partner be introduced with the same firm name and assets etc. after a few years of the Demise of the partner.
Thanks for your time.
adv. rajeev ( rajoo )
(Expert) 21 October 2011
New partner can be admitted, bt there should be his percentage of capital in the partnership deed.
Sailesh Kumar Shah
(Expert) 21 October 2011
If partnership is not restricting or silent then new partner can be introduced.
Arun Kumar Bhagat
(Expert) 21 October 2011
Partnership agreement has to be seen regarding issues of inclusion of new partner after demise of another partner. Sometime firm is carried on as Proprietorship and sometime there are clauses of induction of new partner. All depends upon the clause inserted in the agreement.
prabhakar singh
(Expert) 21 October 2011
As it was a partnership firm of only two partners,the firm stood dissolved as soon as one among them died because you can not think
of a partnership firm only with one partner to continue.
So to proceed further a new partnership would be needed to be created by a new deed of partnership in which assets of old firm can be taken into account depending upon the fact
that new entrants are heir of deceased or freshers.
Moreover this is a repeated query,answer was given to you very clearly here before also.
A V Vishal
(Expert) 21 October 2011
On death of the partner, the firm ceases to be a firm as such and the continuing partner cannot introduce a fresh partner without dissolution of the existing firm.
A V Vishal
(Expert) 21 October 2011
Dear experts who have answered the query before me can you please explain how the partnership continues on the death of one of the two partners!!!!!!!!!!!!
Sailesh Kumar Shah
(Expert) 21 October 2011
Shri A V Vishal
I miss to see only '2 partner'. due to this reason, i answered.
Thanks a lot sir for correcting me.
kamal
(Querist) 21 October 2011
Thanks for the replies.
The clause regarding the demise of a partner in the deed states that the heirs of the deceased partner shall jointly and severally be partners of the firm thereafter to the extent of the share of the deceased.
In this case there has been a long gap after the demise of a partner and the firm hasn't done much of business but would want to restart the firm including tbe heirs of the deceased as partner. Wonder if it would be valid to use the same name of the firm etc.
Thanks
A V Vishal
(Expert) 22 October 2011
Yes in such case you can continue provided the deed is properly drafted.
