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Navoneel Karmakar
Resource Centre / Categories :- Legal Formats  » Corporate Law  » Company Formation
Formation Agreement to Convert a Partnership into a Limited Company
Navoneel Karmakar | 01/01/1970

A Formation Arrangement is a contract that allows an existing partnership firm to sell its entire business to an existing limited company or convert to a limited company. When a limited company sells or converts, it takes over the business of a partnership firm for an agreed price known as "price consideration." The company can settle the price in part by paying cash and in part by allocating its shares and debentures to the partners.

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