Question

The incorporated partnership Act 1962 ( Act 152) outlines possible means through which a firm can be dissolved. Explain five (5) of such reasons for dissolution of a firm.

Answer 1

Solution A fastnesshup firm can be dissolved for various reasons. The dissolcetin of a partnesship from can happier voluntarily or is volutarily dice to the following reasons." Insolvency 4 partners: If any one partner or all the partners are declared in solvent, then the partnership tim should be mandatorily dissolved. No parties can declare himsely as insolvent, court order is required to declare a partner / partners as insolvent- 2. Dissolutions by notice If a partnership firm is at will, then any of 8 the partners of that from could dissolve the firm by issuing a notice to the others partners. In the notice, the partner must provide the reasons for the partnership firm in writing. one dissolution a notice agreement 3. Dissolution by agreement; Any partnership firm can be dissolved by issuing to all partners of the firm. The partnership firm can be dissolved, if all the pootness are in agreement en dissolution - This type of dissolution is also called as voluntary dissolution 2

4. Commitment of any illegal activity to business: • If the actusities of the partnesship firm is illegal , then the flam can be dissolved by agreement of the Partness os through notice to the partness. 5. Death of a partner A partnership firm must be dissolved in the event % death fa partner where he upholds the soles and responsibilities of an acting chairperson amongst the other partness of the business frem of a a partnership firm are, . Note: * other reasons for dissolutions Expiry of term: Completion of work or contract Resignation of partnet