Partnership into private limited

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 January 2010 There is a partnership firm and as per the agreement of the firm there will be not Dissolution of the firm at any point of time even in case of death or insolvency of partners. My query is if the partnership firm is taken over by a Pvt. Ltd. Co. does the firm necessarily be dissolved.The Company was formed with mutual consent of all the partners of the firm, the business is being carried int he same manner as the partnership, all the partners in the firm are the directors & shareholders in the new formed company.

Rasesh

Rasesh (Expert)
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20 January 2010 The business ofthe firms can be taken over by the pvt ltd co. But that does not mean that the partnership has to be dissolved. The partnership continues as it is.