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Write the Circumstances under which a Firm is Dissolved. |
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Answer» Circumstances for Dissolution of a Firm : (i) Compulsory Dissolution (Sec.41): A Firm is Compulsory Dissolved in the following cases (a) When All or But One Partner of the Firm becomes Insolvent . (b) When Business of the Firm Becomes Unlawful . (ii) Happening of an Event (Sec. 42): A Firm may be Dissolved on the Happening of Any ONE of the following Incidents : (a) On the Insolvency of a Partner. (b) On the Fulfilment of the Object for which the Firm was Formed. (c) On the Expiry of the Period for which the Firm was Formed . |
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