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QUESTION 1
Raju and Kamala set up a consultancy firm under the name of Expert Consultancy in June 2000. The partnership agreement clearly stated that the partnership shall remain for a ten year period. In December 2010, Kamala took a personal loan amounting to RM100,000 from Bank Business but failed to pay three installments. Kamala later assigned her interest in the firm to Bank Business. Raju was not happy with the assignment and gave a notice to Kamala for dissolution of the firm. Raju decided that if Kamala refused to accept the notice, he would apply for dissolution by a court order.
Discuss:
a) The right of Kamala to assign her interest in Expert Consultancy to Bank Business.
(10 marks)
b) Discuss the ways for dissolution of a partnership. What are the grounds that Raju could use to apply for dissolution of partnership by way of court’s order?
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