TO BE PREPARED/TYPED ON NON JUDICIAL STAMP PAPER
OF THE VALUE AS APPLICABLE IN YOUR STATE
FORMAT OF MERGER AGREEMENT
We, (1)……………….. (2) ……………………….
(3)……………………….partners of M/s ……………….. & (1)
…………………. (2) ……………………….. (3) ……………………..
partners of M/s. …………………….execute this Merger Agreement on this ____
day of ______, at ____________:
1. M/s A & Co., a Partnership/Proprietorship firm of Chartered
Accountants having its registered Head Office at __________,
duly registered with the Institute of Chartered Accountants of
India vide Firm No. _________ in _________ region (which
expression shall include its successors, heirs and assigns).
The date of establishment, name of the partners, their
membership nos, are as follows :-
(i) Date of establishment
(ii) Name of the Partners Membership No.
2. M/s B & Co., a Partnership/Proprietorship firm of Chartered
Accountants having its registered Head Office at ___________,
duly registered with the Institute of Chartered Accountants of
India vide Firm No. __________ in _______ region (which
expression shall include its successors, heirs and assigns).
The date of establishment, name of the partners, their
membership nos, are as follows :-
(i) Date of establishment
(ii) Name of the Partners Membership No.
Now, therefore, in consideration of mutual promise herein made and the
consideration hereunder expressed, the parties hereto mutually covenant and agree
as follows :-
1. That the name of the merged firm will be ________________ and the
date of establishment of the merged firm is the date of establishment of
the oldest/older firm i.e. ________.
2. That this merger will come into force w.e.f. __________ 20XX,
whereafter, the merging firm i.e. M/s A & Co, M/s B & Co. cease to exist
and a separate partnership deed has been executed on ________
amongst the partners of the merged firm.
3. That the following persons are the partners of the merged firm :-
1. Mr. __________________________ Membership No. ________
2. Mr. __________________________ Membership No. ________
3. Mr. __________________________ Membership No. ________
4. Mr. __________________________ Membership No. ________
5. Mr. __________________________ Membership No. ________
6. Mr. __________________________ Membership No. ________
7. Mr. __________________________ Membership No. ________
8. Mr. __________________________ Membership No. ________
We, all the partners of the merged firm ……………………………………… understand
that this merger has the following consequences in pursuance to the decision of
the Council of the Institute: -
1. That the name of the erstwhile merging firms will be frozen by the
Institute.
2. And in case 75% or more of the continuing partners of one or more
erstwhile merging firm(s) are willing to demerge, they can demerge after
giving due notice and will be entitled to the following benefits :
(i) They will be entitled to the total seniority acquired i.e. their earlier
pre-merger seniority and the years during which they were in
merged firm.
(ii) They are entitled to their old firm’s name.
Provided in case, 75% is a fraction, then the same will be rounded off to
the next number.
3. That the date of establishment of the new demerged firm will be the
date of demerger.
4. That the demerged firm is entitled to seniority of pre-merger and
merger period for the empanelment and other professional purpose.
5. That to effectuate such demerger, no concurrence/acceptance is
required from the other continuing partners of the merged firm. The
partners of such demerged firm shall execute a partnership deed. The
merged firm as well as the demerged firm shall submit fresh Form 18 as
prescribed under the Chartered Accountants Regulations, 1988 to the
Institute within the prescribed period.
6. In case of 75% or more of the continuing partners of one of the
erstwhile merging firm have demerged after giving due notice to the other
partners, then in such case, the merger shall come to an end and if the
remaining erstwhile merging firms/partners of the erstwhile merged firm
decided to continue, then they should enter into a fresh
Merger/Partnership Agreement and shall submit fresh Form 18 as
prescribed under the Chartered Accountants Regulations, 1988 to the
Institute within the prescribed period.
7. That the demerger in the manner hereinbefore mentioned can be
demanded only within a period of 5 years from the date of merger.
IN WITNESS WHEREOF, the Partners of the Merged firm M/s………………………….
hereto set their hands on this agreement in the presence of the witnesses.
WITNESSES : (i) ----------------------------
(ii) ----------------------------
1. (iii) ---------------------------
(iv) ---------------------------
(v) …………………………….
(vi) ……………………………
2 Partners of M/s. ……………
