Question
Legal Studies Question on Company Law
Identify the incorrect statement.
A
Application for registration of firm must be signed by all the partners.
B
A third party cannot file a suit against un-registered firm.
C
The registration of a firm is a condition precedent to the right to institute a suit.
D
If a partner refuses to sign the application for registration, then the registration can be done only by dropping the name of such a partner from the firm.
Answer
A third party cannot file a suit against un-registered firm.
Explanation
Solution
The correct option is (B):A third party cannot file a suit against un-registered firm.