presentation of business law1

8/9/2019 Presentation of Business Law1

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TOPIC:

CHANGE IN THE CONSTITUTION OF FIRM

SUBMITTED TO:

SIR REHAN AZIZ SHERVANI

SUBMITTED BY:

USMAN ANWAR (30230)

QAYYUM BIN SHAHID (30206)

TANZIEL UR REHMAN (30226)

IMRAN MANZOOR (30239)


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Change in constitution of firm happen due to

the following reasons:

Introduction of a new partner Sec. 31

Retirement of a partner Sec. 32

Expulsion of a partner Sec. 33

Insolvency of a partner Sec. 34

Death of a partner Sec. 35


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Cannot be made without consent of all

partners

Liability

For acts done after he becomes partner

Depends on mutual agreement


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If he ceases to be partner but others continue

It happens

With the consent of all

In accordance with express agreement

In partnership at will, by giving notice

Liability

For all acts before his retirement

Continues to be liable until public notice is given

Rights May carry on competing business

Can claim 6% interest on share in property

Share of profits


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Can be done if:

Power is given to partners by express contract

Exercised by majority of partners

Exercised in absolute good faith

Is in interest of the firm

Served with notice

Opportunity of being heard is given

Rights & Liabilities same as retiring partner


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Ceases to be partner from the date of

declaration by court

Firm is dissolved

Partners property not liable for firm acts

after adjudication

Firm not liable for acts of the insolvent after

this


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Firm dissolved

Property not liable after death

No public notice required


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Can do so with all partners consent

Transferee cannot become partner

Cannot interfere in the business, require

accounts & inspect

Entitled to receive profits


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Following procedure is followed where at the

same time one partner is joining and the other

partner is leaving the firm:

1) Procurement of executed partnership deed and

form c

2) Procurement of CNIC cards3) Drafting of revised partnership deed

4) Publishing of public notice in newspaper

5) Drafting of affidavit


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6) Preparation of form v

7) Signing of document

8) Attestation of document

9) Submission of fee

10) Submission of document

11)Inspection of documents and issuance of form D


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Step 1: Procurement of executed partnership

deed and form C:

Partnership deed and form c is procured toextract necessary provision regarding theretirement and admission of the partner. Without

them a revised partnership deed cannot bedrafted.

Step 2: Procurement of CNIC cards:

Before changing the constitution of a firm photocopies of a CNIC cards are procured from theintended partners.


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STEP 3: DRAFTING OF REVISEDPARTNERSHIP DEED:

3rd step involves drafting a revisedpartnership deed on stamp paper of 500 of

revised partnership deed is contract that

revise mutual rights and duties of partners.


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STEP 4: PUBLISHING OF PUBLIC NOTICE IN

NEWSPAPER:

The fourth step involves publishing of public notice

of retirement in a news paper.

Practical exposure:

Specimen of public notice

Mr. Sharief-ur- Rehman S/O Abdul Rehman partner

M/S orison enterprises have retired w.e.f

02.01.2007. The entire liability/share/ interest havebeen paid to the retiring partner. Mr. Hassan

Mahmood S/O Ch.M Ashiq R/O 112 YY-Block model

town Lahore.


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STEP 5: DRAFTING OF AFFIDAVIT (OFFICIALDECLARATION):

Affidavit is drafting and attached with the

other documents.


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STEP 6 PREPARATION OF

FORM V:

Following are the contents of

the Form.

Particular of new partner. Particular of outgoing partner.

Retirement date.

Joining date.


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Step 7 SIGNING OF THE DOCUMENTS

Intended partners and witnesses sign the

documents in the presence of one another.


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Step 8 ATTESTATION OF DOCUMENTS

The 8th step requires that the revised

partnership deed, CNICs and form V must beattested by Notary Public or by an Advocate


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STEP 9 SUBMISSION OF REGISTRATION FEE:

Rupees 50, as fee for change in constitution, is deposited in

National Bank of Pakistan. The relevant account No. is CO-3545

and the fee is deposited on Chillan No. 32 A

Following are the contents of form 32 A.

1) Fee deposited by

2) Purpose of fee

3) Account No. to which the amount is to be credited

4) Signature of the depositor

The form is deposited in triplicate; banker stamps them and

returns one leaf to the depositor.


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Step 11 INSPECTION OF DOCUMENTS ANDISSUANCE OF CERTIFICATE OF REGISTRATION:

Step 11th involve submission of the abovementioned documents with the registrar of the

firm. After inspection the registrar issues Form D

which is the conclusive proof of registration of

change in the constitution of firm.


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