Page 188 - Quick Insights Book 2022

Ann. 15 – ICAI Rules of Merger & Demerger of CA Firms

PARTICULARS OF CASES: SENIORITY DATE OF EFFECT
(i) In the same trade name Date of establishment as recognized by the Institute 27.2.1999
in the case of the deceased member if the sale/
assignment is made (within one year from the date of
death of the member)
(ii) In the new trade/firm name The date of approval of the new trade/firm name or 27.2.1999
the establishment of practice under new trade/firm
name by other member/members, whichever is later
III Partnership firms
(a) Firm consisting of two partners – If one of 27.2.1999
the partners retires/dies and if the remaining
partner continues either as sole proprietor or in
partnership with others
(i) in the same firm name There is no change in the date of the establishment
of the firm
(ii) in a new firm name Date of approval of new firm name or the date of
establishment of the firm under the new firm name,
whichever is later
(b) Firm consisting of more than two partners – If There is no change in the date of establishment of 27.2.1999
one or more of the partners dies/retires and the the firm.
remaining partners continue to practice in the
same firm name with or without dissolution.
IV Merger or amalgamation of two or more
firms
If two or more firms merge/amalgamate, the new
firm after merger/amalgamation practices.
(i) in the firm name of one of the merged firms. Date of establishment of the firm, which firm name is 27.2.1999
continued to be used after merger.
(ii) in a new firm name, in cases where the (i) Change of name from the date of approval. 4.2.2002
existing firm is seeking change of firm name and
approval thereof. (ii) There is no change in the date of establishment.
The old trade/firm name will be frozen in the Institute’s
records for three years from the date of approval of
the new trade/firm name. In the constitution certificate
issued by the Institute during that period of three
years, the name will be mentioned as “M/s (formerly
known as M/s ............................)”
During that period of three years, the firm will be given
the option to have its original name at the choice of all
the partners only if all those partners so apply to the
Institute in the prescribed manner.
Example:

Name of firm Name of firm Name of new firm Seniority Date of Effect
1. A & Co., 1966 B & Co., 1980 A & Co. Date of establishment will be 1966 27.2.1999
2. A & Co., 1966 B & Co., 1980 B & Co. Date of establishment will be 1980 27.2.1999
3. A & Co., 1966 B & Co., 1980 Y & Co. Date of establishment will be date of 27.2.1999
approval of Y & Co. by the Institute
or constitution of the Partnership firm,
whichever is later.
4. A & Co., 1966 B & Co., 1980 Either AB & Co. or Date of establishment will be 1966 4.2.2002
BA & Co.

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