rajesh (Audit and Assurance) (122 Points)
30 November 2010Dear CCI members,
I have a basic doubt on Partnership constitituions.
Let A corp is a Firm having two partners A and B. Due to unavoidable cause suppose B dies. Will the firm get dissolve at the same time or 'A' has any option to add another person as his partner with in any specified time to keep his business unaffected. Whether any such time limit is there???
Seeking ur valuable replies
purvi
(some)
(240 Points)
Replied 30 November 2010
IPA'32 defines partnership firm as constituting of atleast 2 partners.
hence in situations where it consists of only 2 partners and one of them dies as u said, the firm stands dissolved if and only if a new partner was not appointed before the death of either of the 2.
so A can continue in same business But as a proprietor or also admit new partner with a new firm name and registration.
rajesh
(Audit and Assurance)
(122 Points)
Replied 30 November 2010
but boss, what will happen when u r an auditor of a company and ur firm is getting dissolved. U cant continue as a sole proprietor.
And also suppose it happens on 31st march of the financial year.
please suggest me
purvi
(some)
(240 Points)
Replied 30 November 2010
the firm stays appointed for that particular financial year for which it was so appointed vide board resolution.
the partner appointed can audit and sign in firms name for that particular year of appointment..
it does not affect firms appointment for that year
so what if it happens on 31st march.? no special treatment. > Firm stays appointed only.
from next financial year onwards - the auditor can be reappointed in new firms name.
ok boss?
CAclubindia
