Skip to content

CMA Intermediate · Business Laws and Ethics · Indian Partnership Act, 1932

A partner of a registered firm retires, and the firm wishes to give public notice of the retirement under the Indian Partnership Act, 1932. Which statement correctly describes how public notice is given?

For retirement from a registered firm, public notice requires notice to the Registrar of Firms, plus publication in the Official Gazette and in at least one vernacular newspaper circulating in the district of the firm's place or principal place of business. Any one of these alone is insufficient.

  1. ABy publication in the Official Gazette alone
  2. BBy notice to the Registrar of Firms, together with publication in the Official Gazette and in at least one vernacular newspaper circulating in the district of the firm's place or principal place of businessCorrect
  3. CBy publication in at least one vernacular newspaper circulating in the district alone
  4. DBy notice to the Registrar of Firms alone

Explanation

Section 72(a) provides that for retirement or expulsion from a registered firm, public notice is given by notice to the Registrar of Firms under section 63, and by publication in the Official Gazette and in at least one vernacular newspaper circulating in the district where the firm has its place or principal place of business. The Gazette plus newspaper alone is the route for other cases, so the other options are incomplete.

Did you get it right without looking?

One question tells you little. A timed set on Indian Partnership Act, 1932 shows your real accuracy, how long you take and where you lose marks.

Practise Indian Partnership Act, 1932Free diagnostic mock

More Indian Partnership Act, 1932 questions