When the business of the firm becomes illegal, the way of dissolution of the firm is__
Dear student
According to section 41 of the Indian Partnership Act, 1932, a firm will be compulsorily dissolved, if it becomes illegal or unlawful either by its any activity or by the activities of the partners. This dissolution of the company will dissolve the partnership also. If there is more than one undertaking, only the illegal one will have to be dissolved compulsorily. Other cases in which a compulsory dissolution can take place can be a partner becoming insolvent or an event that makes the business unlawful.
Regards
According to section 41 of the Indian Partnership Act, 1932, a firm will be compulsorily dissolved, if it becomes illegal or unlawful either by its any activity or by the activities of the partners. This dissolution of the company will dissolve the partnership also. If there is more than one undertaking, only the illegal one will have to be dissolved compulsorily. Other cases in which a compulsory dissolution can take place can be a partner becoming insolvent or an event that makes the business unlawful.
Regards