What are the succession rules for a proprietary firm? Can a father nominate his son to succeed after him & continue the firm as proprietor?
2 Answers from Attorneys
proprietory concern will devolve up on his legal on death , even nominee is made he is accountable to legal heirs , nominee may be able to continue the business but not as if his own but with accountability to legal heirs. However by executing a will , it can be made infavour of person of his choice excluding any legal heirs from succession
Dear Sir / Madam,
If the owner of a sole proprietorship dies, then the business also ceases to operate, because a sole proprietorship is not considered to be separate from the individual owner. But during the father's lifetime, the son can start a new sole proprietory concern and takeover the assets and liabilities of the father's proprietory concern.
Related Questions & Answers
Thanx sir but what language should i write on the paper to make a will. Asked 6/13/13, 8:14 am in India Probate, Trusts, Wills & Estates