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Monday, 30 May 2011

Explain the Procedure of Admission and Withdrawal of a Partner


ADMISSION OF A NEW PARTNER :-

Following are the important conditions of admission :

1. Consent of Other Partners :-
At any time new partner can be admitted in the partnership with the consent of all existing partners.

2. Not be Insolvent :-
A new partner admitted in a firm may not be insolvent.

3. Liable for All Acts :-
After the date of admission new partner will be liable for all acts of the firm.

4. Not Liable Before the Admission Date :-
A new partner will not be responsible about any action or obligation of the firm before his admission.

5. Other Conditions :-
If there are some other conditions, these will be determined according the provisions of partnership agreement.


RETIREMENT OR WITHDRAWAL OF A PARTNER :-

A partner may retire or withdrawal from the partnership in the following ways :

1. With the Consent of Other Partners :-
A partner may withdraw or retire from the firm with the consent of all other partners.

2. According to Agreement :-
A partner may retire or withdraw from a firm accordance with an express agreement by the partners.

3. Partnership At Will :-
In case of partnership at will a partner may cure by the giving 14 days notice to other partners.

4. Liable to Third Parties :-
A withdrawing partner will be liable to third parties for all acts of the firm until he gives public notice.

5. Not Liable After Retirement :-
After the retirement a partner is not liable for any act of the firm.

6. Right of Benefits :-
Under the provisions of agreement a retired partner has a right to receive all the benefits from other partners.

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