My father is in a partnership deed with with a partner (Both are 50% partners). My father wants to transfer his partnership interest to me. If this is possible without the approval of the other partner? If so, what is the method to do this? What kind of deed is to be prepared for this? Any gift deed possible? What are the expenses?
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Hello,
This is not possible without the consent of other partner.
Procedure:
The proposal for change of partner will be given to the registrar on the letterhead of the firm with aign of both the partners.
Their will be a publication in newspaper and gazette.
Then again it will go to the registrar and then subsequent amendment will be done in the partnership deed.
Regards
your father must have entered into Partnership deed with other partner
2) there must be clauses in deed regarding retirement of partner and admission of new partner
3) you need approval of other partner for being admitted as partner
4) legal fees vary depending upon lawyer engaged by you
No partner can sell or transfer his share or part or parnership of the firm to any one without the consent of the other partners. For example, A, B, and C are three partners.If “A” wants to sell his share to “D” as his health problems prevent him from working, he can not do so until B and C both agree.
The partnership deed to be perused for the conditions approving your desire.
The partnership interest cannot be transferred at your whims and fancies.
a partnership is constituted by an agreement between the partners.
Being an agreement and an agreement enforceable at law, such an agreement must fulfill the basic requirements of a valid contract, as required by the Contract Act.
Section 6 of the Partnership Act provides that In determining whether a group of persons is or is not a firm or whether a person is or is not a partner in a firm regard shall be had to the real relation between the parties as shown by all the relevant facts taken together.
receipt by a person of a share of the profits of a business or a payment contingent upon earning of profits or carrying with the profits earned by a business, does not of itself make him a partner with the person carrying on the business.
Similarly, a share given in profits to a servant or agent as remuneration does not make him a partner, or if a widow or child of a deceased partner is given any annuity in payment of the share of the deceased partner It does not make the widow or child a partner, or if a business is sold with goodwill and the seller is given a share in profits towards payment of the sale price it will not make him a partner of the firm. But otherwise wherever the agreement is for sharing of business carried on by two or more persons the partnership relation will be inferred.
if a partnership deed provides that on the death of a partner his heirs or any one or more of them should be admitted as partners or partner in place of the deceased partner even in such a case on the death of a partner his heirs or any of them do not become partners automatically on such death. But a fresh agreement of partnership will have to be executed between the existing partners and the heirs or heir of the deceased partner and if the heir is a minor the new partnership will stand postponed till the minor attains majority or if the surviving partners are more than one, the minor can only be admitted to the benefits of partnership.
