Wednesday, 13 February 2019

Indian Partnership Act 1932 (remaining)


RIGHTS AND DUTIES OF PARTNERS
Rights of Partners
1.      Right of Profit.
2.      Right of Opinion.
3.      Right of Inspection.
4.      Right of management.
5.      Right to Exercise Power.
6.      Right to Exercise Power.
7.      Right of Retirement.
8.      Right of Existence.
9.      Right of Admission.
10.  Right of Interest.
Duties of Partners.
1.      To be Sincere and Faithful.
2.      Maintenance of True Accounts.
3.      Common Advantage.
4.      To keep the secrecy.
5.      Use of Firm Property.
6.      Provide all information’s.
7.      To carry on other business.
8.      Profit should be paid to the firm.
9.      Compensation for loss.
10.  Distribution of loss.
11.  Use of powers within limits.
12.  To Abide the Decision.

DISTINGUISH BETWEEN PARTNERSHIP AND HINDU UNDIVIDED FAMILY
1.      Mode of creation.
2.      Acquisition of Interest.
3.      Admission of New Members.
4.      Limit over number of Members.
5.      Authority of Members.
6.      Liability of Members.
7.      Right of Members to Demand Account.
8.      Right to Dissolution or Partition.
9.      Need of Registration.
10.  Effect of Death of a Member.


DISSOLUTION – CONCEPT
Section 39
Dissolution of a Firm.
Dissolution of a Partnership.


MODES OF DISSOLUTION OF A FIRM

MODES OF DISSOLUTION OF A FIRM
By voluntary acts of Partners themselves  By operation of Law  By intervention of a Court
Compulsory Dissolution        On happening of Certain Contingencies
By Consent                 Insolvency of all or all                                   By expiry of term
except one
By Agreement                        Some event making                          By Completion of undertaking
partnership business Unlawful        
By Notice                    Some event making business                       By death of partner
unlawful if carried on in
partnership                                        By insolvency of partner


Insanity of Partner
Permanent Incapacity of Partner
Misconduct of Partner Affecting Business
Wilful or persistent Breach of Agreement
Transfer or Sale of Whole Interest of Partner
Business working at a loss
Just and Equitable Ground


CONSEQUENCES OF DISSOLUTION OF A FIRM
1.      Appointment of Receiver by the Court.
2.      Liabilities of a Partner on Dissolution of a Firm.
a.      Liabilities of Acts done by Partners, done after dissolution.
b.      Continuing Authority of Partners for purposes of winding up.
3.      Rights of the partners on Dissolution of a Firm.
a.      Rights of Partners to have Business Wound up.
b.      Continuing authority of the partner for the purpose of winding up.
c.       To Account for Personal Profits after Dissolution.
d.      Right to restrain from use of Firm name or Firm Property.
e.      Agreement in restraint of trade.



1 comment:

  1. The creation of partnership deed format is simpler, and no legal formalities are to be followed to establish it. At the same time it doesn't incur a lot of expenses for its creation unlike a corporation. Nonetheless, compared to the sole trader's concern, it may present some difficulties , particularly in selecting and organizing partners, etc.

    ReplyDelete