the indian partnership act, 1932
DESCRIPTION
The slide contains brief information about The Indian Partnership Act, 1932.TRANSCRIPT
THE INDIAN PARTNERSHIP ACT,
1932
PRESENTED BY: KIRAN A. PATHADE
SRO0392747BATCH NO.: 69
CONTENTS
Definition of partnership Features of partnership Cases where no partnership exists Classification of partnership Types of partners Partnership deed Registration of partnership firm Effects of non-registration Rights of a partner Reconstitution Dissolution
DEFINITION OF PARTNERSHIPAs defined by Partnership Act 1932:
The relation between the persons who have agreed to share the profits of the business carried on by all or any one of them
acting for all.
Features of a Partnership firm
Agreement Association of two or more persons There must be some business There must be sharing of profits Mutual agency
CLASSIFICATION OF PARTNERSHIP
PARTNERSHIP MAY BE CLASSIFIED ON THE BASIS OF THE FOLLOWING
On the basis of duration On the basis of the extent of the business
On the basis of duration
•Partnership at will •Partnership for a fixed period
On the basis of extent of
business
•Particular partnership•General partnership
TYPES OF PARTNERS Active partner
Dormant partner
Nominal partner
Partner in profits only
Sub-partner
Partner by estoppel
Partner by holding out
PARTNERSHIP DEED
The agreement creating a partnership may be implied or expressed. However, to avoid further disputes, it is always better to have an agreement in writing. Such an agreement in writing is called a “partnership deed”
REGISTRATION OF PARTNERSHIP FIRM
Particulars to be filled in while registration Name of the firm The place or principle place of the business The date on which each partner joined the firm The name(in full) and the permanent address
of the partners The duration of the firm, if any The application must be signed by all the
partners.
EFFECTS OF NON-REGISTRATION
No suit against other partners and firm No suit by the firm against third parties No claim to a set off
RIGHTS A PARTNERRight to take part in the conduct of the
business
Right to be consulted
Right to remuneration
Right to interest on capital
Right to interests on advances
Right to share profits
Right to access the books of accounts’
Right to be indemnified Right to be consulted at the time of
admission of a new partner
Right to use partnership property
Right not to be expelled
Right to retire
Right to share subsequent profits
RECONSTITUTIONA firm is said to be reconstituted, when the following occurs and the firm continues:
Admission of a partner Retirement of a partner Expulsion of a partner Insolvency of a partner Death of a partner Transfer of partners share
DISSOLUTION OF A FIRM
According to section 39, “the dissolution of partnership between all the partners of a firm is called dissolution of firm”. Dissolution of a firm marks the end of the functioning life of the firm. It discharges the contract which was created among the partners.
DISSOLUTION OF A FIRMDissolution without the intervention of
court (voluntary dissolution) Dissolution by consent of all partners Dissolution by contract between the partners Dissolution on happening of certain contingencies Compulsory dissolution Dissolution by notice
Dissolution With intervention of court (court order)
Insanity of a partner Permanent incapacity Misconduct Persistent breach of agreement Transfer of interest Continuous losses Just and equitable grounds
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