Dissolution of Partnership Firm
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How can a joint venture among partners be dissolved?Marks:1
A joint venture among partners can be dissolved through contingent dissolution after the completion of project or expiry of its term.
Can a partnership firm be dissolved if a partner becomes incapable of performing his duties?Marks:1
A partnership firm can be dissolved through Court if any of the partners becomes incapable of performing his duties.
State the conditions for compulsory dissolution.Marks:2
A firm stands to be dissolved under following conditions:
- When the business of the firm becomes unlawful due occurrence of an event
- When one or all partners are declared insolvent
Write a short note on Dissolution of a partnership firm.Marks:3
A partnership firm gets dissolved when it ceases to continue its business further. The firm discontinues its activities and the partners do not have any kind of partnership with other partners.
A firm gets dissolved is also dissolved under many cases like when the project is completed for which the firm was formed, due to death of a partner, any of the partner becomes insolvent, the business of the firm becomes insolvent, when any of the partner misuse the money of business, the court finds its just and equitable to dissolve a firm, etc.
Dissolution of a partnership can happen through different ways like by agreement, dissolution by notice, contingent dissolution, compulsory dissolution or through court.
Write short note on:
1. Contingent dissolution
2. Compulsory dissolution.Marks:4
1. Contingent dissolution: a firm may be dissolved on the happening of following events:
- On the death of a partner
- On the adjudication of a partner as insolvent
- On the completion of venture for which the firm was setup
- On the expiry of the term or fixed period
2. Compulsory dissolution: a firm automatically needs to get dissolved due to following situations:
- When the business of the firm becomes unlawful due to occurrence of any such related event
- When one or all the partners of the firm are declared insolvent