Date post: | 04-Jun-2018 |
Category: |
Documents |
Upload: | ritesh2030 |
View: | 219 times |
Download: | 0 times |
of 10
8/13/2019 LAW Partnership Act 1932
1/10
Partnership
Section 4 of the Partnership Act, 1932 defines the termPartnershipas under:
Partnership is the relation between persons who have agreed to
share the profits of a business carried on by all or any of themacting for all.
Thus, Partnership is the name of legal relationshipbetween/among persons who have entered in to the contract
8/13/2019 LAW Partnership Act 1932
2/10
Partnership Act, 1932 Indian Partnership Act, 1932 is a Central Act. (made by Parliament
This Act deals with special type of contract
Provisions regarding contract of partnership were earlier containedin the Indian Contract Act, 1872.
This Act extends to the whole of India except the state of Jammu
and Kashmir.
This Act came in to force on 1.10.1932, except section 69 which
came into force on the 1stDay of October, 1933.
8/13/2019 LAW Partnership Act 1932
3/10
Types of Partners Active partner
Sleeping partner
Nominal partner (does not contribute any capital; but lends his nameand credit to the firm)
Sub-partner
Partner by Estoppels or Holding out:
Minor as a partner
8/13/2019 LAW Partnership Act 1932
4/10
8/13/2019 LAW Partnership Act 1932
5/10
Contents of partnership Deed Nature of business
Duration of partnership
Name of the firm
Capital
Share of partners inprofits and losses
Bank Account firm
Books of account Powers of partners
Retirement and expulsionof partners
Death of partner
Dissolution of firm
Settlement of disputes
8/13/2019 LAW Partnership Act 1932
6/10
Characteristics of Partnership
Agreement
Registration
Number of Partners
Profit and LossDistribution
Business
Unlimited Liability
Share in Capital
Management
Payment of Tax
Co-Operation
Transferability of Shares
Dissolution
8/13/2019 LAW Partnership Act 1932
7/10
Maximum Limit on Number of Partners Section 11 Companies Act provides that the
maximum no. of persons, a firm can have:In case of partnership firm carrying on a banking business 10In case of partnership firm carrying on any other business 20If the number of partners exceeds the aforesaid limit, the
partnership firm becomes an illegal association.If an association of persons or firm having members or partners exceeding theAbove limit will not be an illegal association if that firmsobjective is not to
earn profit.
8/13/2019 LAW Partnership Act 1932
8/10
Essentials Of A Partnership1. Agreement
2. Sharing Of Profits
3. Business
4. Relation Between Partners
5. Twoor More Person
8/13/2019 LAW Partnership Act 1932
9/10
Rights Of The Partners1. To take partin the management of the business.
2. To express opinionin matters connected with the business. Hehas a right to be consulted and heard in all matters affectingthe business of the firm
3. To have free access to all the records, books of account of thefirm and take copy from them.
4. To share in the profits of the business. Every partner isentitled to share in the profits in proportion agreed to betweenthe parties.
5. To get interest on the paymentof advance. Where a partnermakes for he purpose of the business.
6. To be indemnified by the firm against losses or expensesincurred by him for the benefit of the firm.
8/13/2019 LAW Partnership Act 1932
10/10
Registration Of A Partnership FirmProcedure For Registration
The registration of a firm may be effected at any time by sending by post or
delivering to the Registrar of Firms of the area in which any place of business ofthe firm is situated or proposed to be situated, a statement in the prescribed formand accompanied by the prescribed fee, stating :
1. the firm name.
2. the place or principal place of business of the firm.
3. the names of any other places where the firm carries onbusiness.
4. the date when each partner joined the firm.
5. the names in full and permanent addresses of the partners.
the duration of the firm.