Partnership

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 April 2012 Dear expert,
Among five partners, on partner has passed away. Now four remaining partners want to continue business in same partnership.
Whether the dissolution deed required to draft or not?
Please advise.

Vivek Mehta (CA, DISA,CS, MBA)

Vivek Mehta (CA, DISA,CS, MBA) (Expert)
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14 April 2012 Yes you need to form a disollution cum supplementary deed....wherein the things for the settlememt of the deseased partner shall be done with and things of remaing partner for carry on shall be entered in...

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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14 April 2012 Whether the partnership is to be dissolved on the death of a partner or to be contined with the reamianing partners are governed by the clauses in the partnership deed.
i)If there is no stipulation in the partnership deed or there is a clause which states partnership shall not be dissolved, then execute a reconstitution deed with the remaing partner's.
ii)On the other hand,if there is a specifc clause stating what is to be done on the demise of a partner, then act according to that particular clause.

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