partnershipfirm

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 May 2010 My one of the client having partnership firm. Firm having two partner Mr.A & Mr.B. Mr.A expired on 27-03-2010. What is the status of Firm. Firm becomes proprietor ship or firm & if firm who becomes automatically new partner

Rahul Gupta

Rahul Gupta (Expert)
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07 May 2010 Generally, the partnership deed provides for the admission of another partner or dissolution of the firm in case of death of any partner.

However, if not so, then with the consent of the legal hier of the deceased person a new partner may be added or the frim can be dissoved or firm can be continued as a proprietor.

And in case the consent is not avilable, then the firm can be dissolved or the existing partner can continue the firm as proprietorship by giving the goodwill and share of the deceased partner to his legal hier.