Professional Documents
Culture Documents
Professor &
Lawyer
Puttu Guru
Prasad
Partnership Act 1932
Kinds of partners
Types of partnership
Rights of partner
Duties of partner
Partnership Deed :
Partnership Deed is the document that defines the
rights and obligations of partners. Besides names,
address and occupation of partners it lays down the
duration of partnership, nature of business, profit
sharing ratio, right to interest, salary, commission
etc.
Essential elements of partnership:
Existence of a contract;
Carrying on a business;
Sharing of profits;
age below 18
Just profit
No loss
Decide with 6 month
Senior Partner
senior partner
Investor
Expreience
Partner whose level of involvement (and
the associated authority, responsibility, risks,
and rewards) is greater than that of the junior
partners, and at par with other senior partners.
Junior Partner
junior partner
Every partner has a right to check the books of account of the firm
and to get the copies.
Rights to be consulted
Every partner has a right to be consulted and heard before any matter
is decided.
Rights to share profit
Every partner has a right to share equally in the profits earned by the
firm, irrespective of his amount of capital contribution.
Rights to interest on capital
A partner is not entitled to receive interest on capital contributed by him..
Right to use property
Every partner of the firm is co-owner in the property of firm and he has a right
to use it for the best benefit of the business of the allowed.
Rights to admit and expel partner
A new partner cannot be admitted in the firm and an old partner cannot be
expelled from the firm without the prior consent of all the partners.
Right to give opinion
Nature of the partnership business cannot be altered without the prior approval
of all the partners.
Duties Of Partners:
To work for common advantage
To be faithful
Render true account
To indemnify for fraud
Not to claim remuneration
To share profits and losses
To act within authorities given
Liabilities Of Partners
1. Limited
2. Unlimited
UNLIMITED LIABILITY'
A type of business where owners share joint and
several responsibility for the entire amount of debt
and other liabilities amassed by the business.
Unlimited liability is not capped at a maximum
amount and exists regardless of the amount of
investment each owner has personally made. If the
business is unable to meet any financial obligations
or settle any outstanding liabilities, the owner's
personal assets can be seized to satisfy the debts.
Limited Liability Partnerships (LLP)