Dissolution of firm


We have a partnership firm and its tenure is getting expired by next month.Only the MD is entrusted the resposibility to take care of the business.Rest of the partners are abroad.No accounts been furnished ever since the commencement of the firm.Lettrs been sent to him asking for the accounts.But still no response and he is asking for the extension of the firm.

Kindly advice on the next step to be taken

How do we close down the firm legally.

what are the offical procedures to be followed.

When do we have to file the Dissolution deed

 

thanks in advance

 
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Manju,

Dissolution on the happening of certain contingencies: subject to contract between the partners a firm is dissolved:

a) if constituted for a fixed term, by expiry of that term;

b) if constituted to carry out one or more adventures or undertakings, by the completion thereof;

c)by the death of a partner;

d) by the adjudication of a partner as an insolvent.

I hope the above will satisfy your query, however consult your lawyer or an auditor before initiating any step in this regards.  Advocate Kalaiselvan, Vellore; Ph:+919443441062

 
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Advocate/ nadeemqureshi1@gmail.com

agree with expert

 
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Pls suggest what should be done : a partnership firm having two partners, one partner's intention is not good. He is trying to do fraud regarding firm's money. Now when second partner comes to know about this fact, dsnt want to work with him. Now the fraud partner is not ready for signing the dissolution deed. Is there any other way so that second partner can work as a proprietor in the name of firm.
 
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Advocate

Here are few possible ways to seek dissolution of a firm in your case:
1. Dissolution by Notice:
Where the partnership is at will, the firm may be dissolved by any partner giving notice in writing of his intention to dissolve the firm. The firm is dissolved from the date mentioned in the notice as the date of dissolution. An individual partner is empowered to bring an end to the firm.
2. Subject to contract between the partners, a firm can be dissolved on the happening of following circumstances :
i. Expiry of the term when constituted for a fixed term.
ii. Completion of the venture or undertaking when the firm constituted to carry on a venture or undertaking.
However, the partnership agreement may provide that the firm will not be dissolved in any of the above circumstances.
3. Dissolution by the Court:
When the partners are having difference of opinion regarding dissolution of the firm on certain grounds, a suit can be filed by any partner in the court to dissolve the firm. Depending upon the merits of the matter, the court may order for dissolution of the firm.
4. Misconduct: When a partner, other than the partner suing is guilty of misconduct and such misconduct is likely to affect the carrying on of the business, the court may dissolve the firm. The misconduct may be outside the business (punishment for an offence, adultery of a partner etc.
5. Continuous losses:
When the business cannot be carried on except at a loss, the court may dissolve the firm.
6. Any other ground:
The court may dissolve the firm on any other ground where the court considers it just and equitable to wind up the business.

Adv. Rajiv Malhotra
www.lawkonect.com

 
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Is there any liability of legal heirs for the debts taken by the firm in the firm's name,in case one of the partner dies,does any responsibility falls on the legal heirs of the deceased partner in partnership at will. 

 
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