Status of ca firm when one dies out of two partners

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 May 2016 SIR-WE HAVE TWO PARTNERS IN A CA FIRM, WHERE ONE PARTNER DIES- AS PER PARTNER SHIP DEED , THERE IS NO CLAUSE FOR GOODWILL/ROYALTY,/SHARE OF PROFITS PAYMENTS TO THE DECEASED PARTNER. NOW MY QUESTION IS WHAT IS THE STATUS OF THIS FIRM.--------PLEASE LET ME KNOW WHAT ARE THE PROVISIONS AS PER ICAI.

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)

02 May 2016 The terms of the partnership may or may not cover comprehensively i.e. cover of every possible situation. When the deed is silent on a particular issue, the same may checked under the Indian Partnership Act, 1932 or under the case laws relating thereto or under an amicable solution with the family members of the deceased partner by writing an understanding (MOA) of settlement with them.

It is more of a contract than that of ICAI. Only thing you need to check is, the regulations of the ICAI regarding sharing of the profits to non-member (family members of deceased partner).

Querist : Anonymous

Querist : Anonymous (Querist)

02 May 2016 whether the remaining partner can carry his profession in the name of the firm?
what are the legal rights of the remaining partner

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)

02 May 2016 You have to check the provisions of the deed regarding dissolution of the firm.

Querist : Anonymous

Querist : Anonymous (Querist)

02 May 2016 no provision in the deed

Querist : Anonymous

Querist : Anonymous (Querist)

02 May 2016 no provision in the deed of partnership regarding dissolution of the firm