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CSEET · Business Laws and Management · Elements of Law relating to Partnership and Limited Liability Partnership

Under the Indian Partnership Act, 1932, when a change occurs in the constitution of a registered firm, who may give notice of the change to the Registrar?

Any incoming, continuing or outgoing partner may give notice to the Registrar of a change in the constitution of a registered firm. Section 63(1) does not limit the right to the retiring partner, a managing partner or a majority group, and the date of the change must be specified.

  1. AOnly the partner who is leaving the firm
  2. BAny incoming, continuing or outgoing partnerCorrect
  3. COnly the managing partner of the firm
  4. DOnly the partners holding a majority share in profits

Explanation

Section 63(1) says that on a change in the constitution of a registered firm, any incoming, continuing or outgoing partner may give notice to the Registrar, specifying the date of the change. The option limiting this to the outgoing partner is wrong because the section is not restricted in that way. The Registrar records the notice in the Register of Firms.

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