Unit - 53 : Dissolution of a Firm A partnership firm can be dissolved . This means that the partners can decide to stop carrying on the business for which it is formed and the partners can decide their share in the profits or losses as on the date of dissolution of a partnership firm.
A firm can be dissolved with the consent of all the partners or in accordance with a contract between the partners .
A firm is dissolved : 1) If all the partners ( except one ) are adjudicated insolvent ; or 2) by the happening of any event which makes it unlawful for the business itself to be carried on or the event makes the business unlawful if it carried on in partnership .
Every Partner is entitled to restrain the other partners from carrying on a similar business of the firm or from using the property of the firm for their own benefit until the affairs of the firm have been completely wound up etc .