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Business and Labour Laws
Hassan, Ali and Riaz are partners in a commercial cleaning service called Alternate Inc. They contract with companies to provide cleaning and maintenance services to offices. Equipment is owned by Alternate Inc. and the cleaning staff is hired on contract basis. Work contracts are negotiated for 6 months of service. Hassan has majority share of 60% in the partnership and also owns the office where Alternate Inc. is based. Ali and Riaz have 20% share each.
They are currently considering dissolving the partnership after completing current assignments and are not taking any new contracts. Hassan has proposed to buy out the other two partners converting the business into a sole proprietorship.
During the performance of services at Telco Enterprises, a fault in one of the machines being used for cleaning led to a fire and damages at Telco Enterprises. After a month, Telco Enterprises sued Alternate Inc. for damages. By this time, the partnership had been dissolved and Alternate Inc. was now registered as a sole proprietorship.
In this scenario, who would be responsible for damages?
Discuss logically and justify your answer with proper argument.
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