The partnership deed of a firm says nothing about dissolution. Whose consent is needed to dissolve the firm by agreement under section 40 of the Indian Partnership Act, 1932?
Question and options
The partnership deed of a firm says nothing about dissolution. Whose consent is needed to dissolve the firm by agreement under section 40 of the Indian Partnership Act, 1932?
Consent of a majority of the partners
Consent of partners with most of the capital
Consent of all the partners together
Consent of the managing partner and one other
Answer and explanation
Section 40 of the Indian Partnership Act, 1932 allows a firm to be dissolved with the consent of all the partners or in accordance with a contract between them; since the deed is silent, unanimous consent is needed. A majority, whether by number or by capital, can decide only ordinary matters connected with the business under section 12(c), not dissolution.
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