Page 150 - DMGT407Corporate and Business Laws

Unit 6: Partnership Act and Limited Liability Act

Notes
6.6.4 Insolvency of a Partner
6.6.5 Death of a Partner
6.6.6 Rights and Duties of Partners in some Specific Situation
6.6.7 Revocation of Continuing Guarantee as a Result of Change in the Firm

6.7 Dissolution
6.7.1 Dissolution of Firm and Dissolution of Partnership
6.7.2 Another Classification of Methods of Dissolution
6.7.3 Dissolution of Firm
6.7.4 Dissolution by Court (s.44)
6.7.5 Consequences of Dissolution
6.7.6 Settlement of Accounts (s.48)

6.7.7 Rights and Liabilities of Partners on Dissolution
6.8 Limited Liability Act
6.9 Formation of an LLC
6.9.1 LLC Agreement
6.9.2 Powers of Court
6.10 Summary
6.11 Keywords
6.12 Review Questions
6.13 Further Reading

Objectives

After studying this unit, you will be able to:
Describe the meaning and character of partnership;

Discuss the aspect of partnership deed;
Recognize the relationship of partners;
Explain the limited liability act.

Introduction

An individual or a group of persons may decide to start business. One of the first steps to be
taken is to determine what kind of business organisation it will be. If only one person starts the
business, we call that business sole proprietorship and if a group of persons start the business,
that can be either partnership business, or a company or a cooperative form of organisation.
Though a business unit may be owned by any of these forms of organisation, usually one form
is more suitable than others for a particular business enterprise. The choice will depend upon
the considerations such as the type of the product, capital requirements, government control,
legal requirements, competitive conditions in the chosen industry, level of taxation, ownership
privileges and the like.

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