Relations of Partners to Third Parties: Authority, Liability, Holding Out, and Special Cases
Partners are agents of the firm for business purposes, so acts within the usual course bind the firm and all partners to third parties, subject to statutory limits, agreed restrictions known to outsiders, and protections for good‑faith third parties. The Indian Partnership Act, 1932 codifies these rules on partner authority, firm liability, holding out, and…
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Dissolution of a Firm: Causes, Modes, and Liabilities
Dissolution of a firm means the complete breakup of the partnership relation among all partners and cessation of the firm’s business, followed by winding up, realization of assets, discharge of liabilities, and distribution of any surplus as per rights and agreements. In practice, clear documentation, timely public notice, and disciplined settlement of accounts are critical…
Read article Effect of Non-Registration and Registration of a Partnership Firm
Non‑registration does not invalidate the partnership, but it imposes significant disabilities on enforcing contractual rights in courts; registration cures these disabilities by enabling the firm and partners to sue, claim set‑off, and be formally recognized on the Register of Firms. Section 69 of the Indian Partnership Act, 1932 is the central provision governing these effects…
Read article Definition and Features of a Company: Distinction from Partnership
In modern business law and finance, the company has emerged as the most dominant form of business organization, offering features that distinguish it from traditional structures like partnership firms. To understand why companies are preferred for large-scale operations while partnerships remain important for smaller ventures, it is essential to examine the definition, key features, and…
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Types of Companies: Mode of Incorporation, Liability, Public Interest, Holding and Subsidiary.
Companies in India are classified along multiple dimensions—how they are formed, member liability, public-interest footprint, and control relationships such as holding–subsidiary—each with distinct compliance and governance implications for banking and finance stakeholders. This guide maps these dimensions under the Companies Act, 2013 and related frameworks to aid structuring, risk assessment, and regulatory alignment. Mode of…
Memorandum of Association and Articles of Association: Definitions, Effect, Distinction
The Memorandum of Association (MoA) and Articles of Association (AoA) are the two core constitutional documents of a company: the MoA defines the company’s external scope and objects, while the AoA governs internal rules and management; put simply, the MoA is the company’s charter and the AoA is its rulebook. Definitions Legal effect Contents at…
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