Explains when the Public Notice is required to be given and when not.

by • 24/06/2013 • GeneralComments (0)364

Q.11    Explains when the Public Notice is required to be given and when not?

Ans:    WHEN A PUBLIC NOTICE IS REQUIRED TO BE GIVEN

A public notice is required to be given in the following three cases.

(a)        Or the retirement or expulsion of a partner, or

(b)        On the dissolution of the firm,

(c)        On the election to become or not be become a partner by a minor on his attaining majority.

 

WHEN A PUBLIC NOTICE IS NOT REQUIRED TO BE GIVEN

A public notice is not required to be given in the following two cases.

(a)        On the death of a partner.                      (b)        On the insolvency of a partner.

 

MODE OF GIVING PUBLIC NOTICE:

The mode of giving public notice is given as under.

In case of a registered firm

In case of an unregistered firm

(a)        It must be given by publication in the official Gazette.

(b)        It must be given by publication in at least one vernacular newspaper circulating in the district where the firm to which is related has its place or principal place of business.

(c)        It must be given to the Registrar of Firms.

(a)        It must be given by publication in the Official Gazette.

(b)        It must be given by publication in at least one vernacular newspaper circulating in the distinct where the firm to which it relates has its place or principal place of business.

 

CONSEQUENCES OF NOT GIVING A PUBLIC NOTICE

If a public notice is not given in case in which it is required to be given, the consequences will be as follows.

Case

Consequences

On election to become or not to become a partner by a minor on his attaining majority. Minor is deemed to have become a partner on the expiry of 6 months [Section 30(5)]
On retirement of a partner. Retiring partner and the other partners continues to be liable as partner to the third parties for firm’s-acts done after retirement [Section 32(3)]
On expulsion of a partner. The expelled partner and the other partners continue to be liable the third parties for firm’s acts done after his expulsion [Section 32(2)]
On dissolution of firm. All the partners continue to be liable to third parties for firm’s acts done after the dissolution of firm [Section 45].

 

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