Reconstitution of a Partnership Firm
There are various ways of Reconstitution of a Partnership Firm :
Introduction of new partners (Sec. 31)
Subject to contract between the partners, on person can be introduced as a partners into a firm without can be introduced as a partners into a firm without the consent of all the existing partners. An incoming partner is not liable for any act of the firm done prior to his admission.
Retirement of a partners (Sec. 32)
A partner may retire from a firm with the consent of all the other partners. where the partnership is at will, a partner may retire by giving notice in writing to all the other partners of his intention to retire:
Explusion of partner (Sec. 38)
A majority of partners can expel a partner only if such power is conferred by contract between the partners, and the power is exercised bonafide by the majority of partners.
Insolvency of a partners (Sec. 34)
Where a partner in a firm is adjudicated insolvent, he ceases to be a partner on the date on which the order of adjudication in made, whether or not the firm is thereby dissolved.
Death of a partner (Sec. 42c)
Subject to contract between the partners, a firm is dissolved by the death of a partners.