By:- Group 3

Kamran Haider

Saad Hasan Niazi

Riaz Ahmed Khamboo

Partnership Act 1932

Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any one of them acting for

all

Partnership Act 1932

Content

Essentials element of partnership

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:

Association of two or more persons;

Existence of a contract;

Carrying on a business;

Sharing of profits;

Prevalence of mutual agency.

Kinds Of Partners

There may be different kinds of partners in a partnership firm. The important classification of partners is given below:Active partners,Sleeping partner,Nominal partner,Partner in profits only,Senior partner,Junior partner,Secret partner,Minor partner.

Types Of Partnership

Partnership at will- (Sec. 7)where time is not mentioned in agreementParticular partnership - (Sec. 8)partner in a specific venture onlyLimited partnership- (Sec. 7) partner may be with limited partnership

Rights Of PartnersSection 12 & 13 of the partnership act

Rights to take part in management Every partner has a right to take part in the conduct of the business.Rights to inspect books

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.

Right to collect debts A partner has an implied right to collect partnership

debts and to give receipts for payments.Right to act as agent Every partner can act as an agent on behalf of the

remaining partners and bind the other partners to his act.

 Rights of retirement Every partner has a right of retirement from the

firm with the mutual consent of all other partners. But when the partnership is at will, he can leave the firm at any time while giving a due notice of his retirement from the firm.

Right of competing business    Any outgoing partner has a right to start a business

competing with that of the firm but he cannot use the name of the firm.

Duties Of Partners:

To work for common advantageTo be faithfulRender true account To indemnify for fraudNot to claim remunerationTo share profits and lossesTo act within authorities given

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