Reconstitution and Dissolution of a partnership
The paper aims to study using secondary research resources. That what are concepts of Partnership reconstitution and dissolution according to the partnership act 1932. Under what circumstances a partnership firm is entitled to these two concepts respectively, what are the rights, duties and liabilities of each of the partners involved under each case. And according to what modes can the accounts be settled among the partners upon the winding up of the business.
"Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any one of them acting for all (The Partnership Act 1932)
Partnership' does not mean a body or association; it means a relationship between separate component persons. This is the kind of relationship that has to be followed for the betterment of business that they are jointly carrying out to full fill common interest of gaining profits from the business.
There are three elements necessary for existence of a partnership: 1. the carrying on of a business.2. The business must be carried on in common. 3. The business must be carried on with a view to gain profits. (Nicholson, 2011).
Essentials of partnership
All individuals share the risks and rewards of the business.
Each partner is entitled to share the net profits of the business.
Partners are jointly and severally responsible for all the debts and obligations of the business without any limit, including loss and damages
Partners have equal rights to make decisions.
All individuals share the ownership of the assets of the business. (Taylor, 2011)
These all have to follow for a legal partnership to be present. In any one of them is missing than there will no partnership.
History of partnership
Partnership law is...