issue:

1. Weather Ahmad and Baba is entitle the salary of RM3000 per month for managing the
firm’s business
2. Whether Ahmad can bring his son Ali as a new partner into his partnership business.
3. Whether Chong can expel Ahmad and Baba from the partnership.
4. Whether Baba must to account and pay to the firm all profit made by him at the restaurant.
Section 3 of the Partnership Act state that, partnership is the relation which subsists
between persons carrying on business in common with the view of profit.There are basically 3
elements of the partnership that can be found in this section.The element are relationship
between persons,carrying on the business in common and with view of profit.However Section
14 (3)(a) of Companies Act 1965 provides that , a professional partnership can have unlimited
numbers of partners.Professional member is said to be persons possessing the stipulate
qualifications for example lawyer,doctor,dentist,accountants and others.The word `person’ in
the act refers to both natural and artificial person,thus individual and corporation are eligible to
form partnership.
According to the section 26 (a) of the partnership act, all the partners are entitled to
share equally in the capital and profits of the business and must contribute equally toward the
losses whether of capital or otherwise sustained by the firm.This section stated that
share,profit and capital must be equally divided.Nevertheless the division can be varied by way
of agreement.Section 26 (e) of the partnership act state that every partner may take part in the
management of the partnership business.However, it can be exluded by an agreement to the
contrary. Section 26 (f) of Partnership Act state that no partner shall be entitled to
remuneration for acting in the partnership business. Section 26 (g) of Partnership Act state that
no person may be introduced as a partner without the consent of all existing partners.There are
5 types of partners which are general partners, active partners, quasi-partner, salaried partner,
and sleeping partner.Sleeping partner is a partner that not take the active part in management
but still liable as partner
According to the section 27 0f Partnership Act, no majority of the partner, unless a power to do
so has been conferred by express agreement between the partners..The Partnership Act 1961 provides 3
fudiciary duties which reflect three main aspect of liability such as duty to render true account and full
information, accountability of partners for private purpose and duty not to compete with the
partnership. According to section 32 of partnership Act, if a partner without the consent of the other
partners carries on any business of the same nature as and competing with that of the firm ,he must
account for and pay over to the firm all profit made by him in that business.

According to this problem, Ahmad,Baba and Chong are partner in ABC Enterprise, a firm which
deals with car equipment. Ahmad and Baba are managing partner while Chong is a sleeping
partner. In the management of partnership business, every partner mat take part in the
management of a partnership business. However, it can be exluded by an agreement to the
contrary. The partnership agreement provides that the capital should be contributed