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

Under section 45 of the Indian Partnership Act, 1932, who may give the public notice of dissolution of a firm so as to end the partners' continuing liability to third parties?

Any partner may give public notice of dissolution. The Act does not require all or a majority of the partners to act together, nor the Registrar. Once such notice is given, the partners cease to be liable to third parties for later acts of the dissolved firm.

  1. AOnly the partner who first proposed dissolution
  2. BOnly the majority of the partners acting jointly
  3. CAny partnerCorrect
  4. DOnly the Registrar of Firms

Explanation

Section 45(2) states that notices under section 45(1) may be given by any partner. No joint action, majority or Registrar is required, so a single partner can give the notice.

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