In a partnership firm with three partners, one partner wants to retire and another person wants to join. A single deed of 'Relinquishment and Reconstitution' is to be executed for effectng retirement of a retiring memeber as well as induction of a new member.
Original deed of partnership was silent on many aspects. Can the points covered in the original deed and points which are not covered in original deed be incorporated in this new 'Relinquishment & Reconstituiton' deed so as to make it a comprehensive draft covering all points ?
No problem... It is provided in the Act itself ... Points not covered under the parent deed would be followed from the Act... You can incorporate in the re-constituted deed.... Remember, the deed can not contain any provision contrary to the provisions of partnership Act..
Can all the partners in the old partnership firm except one of them can retire at a time and can the only remaining partner who wants to continue the business admit new partners afterwards and still continue to do business in the firm name of the old partnership firm. Does the firm automatically not become sole properitorship upon all the other partners retiring at a time untill the new partners are admitted. Will such a situation cause any hurdles in registering the newly constituted partnership in registering with sales tax dept, or any other depts.