A partnership is being dissolved. What would be the procedure? How would one value the business? Can one of the partners purchase the business?
Question
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A partnership is being dissolved. What would be the procedure? How would one value the business? Can one of the partners purchase the business?
Answer
When a business is dissolved, firstly, the debts should be paid. Thereafter, the business capital and profits should be calculated and each partner is entitled to his share (capital and profits) in the business.
Should one partner wish to purchase his partners share, he may do so and negotiate the selling price of his share with his partner.
and Allah Ta'ala Knows Best
Mufti Ebrahim Desai
- Answered by
- Mufti Ebrahim Desai
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