A new partner can be admitted in the firm with the consent of:a)Unanim...
According to the Partnership Act 1932, a new partner can be admitted into the firm only with the consent of all the existing partners unless otherwise agreed upon. With the admission of a new partner, the partnership firm is reconstituted and a new agreement is entered into to carry on the business of the firm. A new partner can be admitted in the firm with the consent of Unanimous consent of all the partners.
View all questions of this test
A new partner can be admitted in the firm with the consent of:a)Unanim...
Admission of a New Partner in the Firm
The admission of a new partner in the firm is a crucial decision, and it can be done with the consent of all the partners. Let's understand the process of admitting a new partner in the firm and the consent required for the same.
Process of Admitting a New Partner in the Firm
The process of admitting a new partner in the firm involves the following steps:
1. Valuation of the Firm: The first step is to determine the value of the firm. The existing partners should agree on the valuation method and the basis of valuation.
2. Negotiation of Terms: The next step is to negotiate the terms of the admission of the new partner. The terms may include the amount of capital to be contributed by the new partner, profit-sharing ratio, management responsibilities, etc.
3. Execution of Deed: Once the terms are agreed upon, a deed of partnership is executed between the existing partners and the new partner.
4. Admission of New Partner: Finally, the new partner is admitted to the firm, and the necessary formalities, such as registration with the Registrar of Firms, are completed.
Consent of All Partners Required
The admission of a new partner is a major decision, and it can affect the existing partners' interests in the firm. Therefore, the consent of all the partners is required for the admission of a new partner. The consent should be unanimous, which means that all the partners should agree to the admission of the new partner.
Conclusion
In conclusion, the admission of a new partner in the firm is a major decision, and it requires the consent of all the existing partners. The process of admission involves valuation, negotiation of terms, execution of deed, and admission of new partner. The unanimous consent of all the partners is required for the admission of a new partner.
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.