A persons has retired from the partnership by a letter to the existing continuing partners writing that he is retiring from the partnership. But he is unwilling to sign the dissolution deed. In such a situation can the existing partners continue with the partnershio by a modification in the deed? is there any alternate route wherein the contnuing partners can continue the business without the concurrence of the retiring partner. Kindly provide me your valuable input.
2 Replies
praveen
(Chartered Accountant)
(6971 Points)
Replied 29 May 2014
I think they will have to take the legal course to settle the problem. The firm has to be dissolved and later a new firm can be formed.
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 29 May 2014
it is not a big problem. just prepare a deed of retirement stating the facts of retirement and amt. payable to retiring partner and other points agreed upon. the deed of retirement shall form part of original partnership deed. thus, remaining partners can continue the firm.
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