1) you can execute specific POA in favour of family member to execute sale deed of your share in partnership firm
2) POA should be attested before Indian consulate
3) on basis of POA your family member can execute sale deed in your sister favour
Gift deed or sale of my share of partnership
Dear Sir/Madam, I got details of your website through Google search. I am trying to seek advice as I am a non-resident Indian. I am a minor partner (5%) in a partnership firm in Mumbai. Since I no longer reside in India, it is my desire to dispose of my share within the partner who is also my elder sister. The Article of Partnership has a " Sale Clause " under which I can sell my share to another partner. As I am not interested in achieving any monetary gains from this sale because it is to my elder sister, my question is, do I have to be physically present in India/Mumbai and transfer this share/sale in a government office or can I do it remotely from here in USA. (Under the current pandemic situation, I do not wish to travel to India) If so, what is the procedure, for example, can this sale deed, Notarized by a Public Notary or by an official at an Indian Embassy suffice. Alternatively, is it better to transfer this share via "Gift Deed"? The reason I am asking this question is that one of my relatives is saying that gift deeds are a better option. Also I had joined the partnership firm in 1977 so it is necessary to lay down the whole history of the company, that is, how it came into existence, names and shares of other partners (though the article of partnership clearly states who the other partners are with their share in the company) on either document, that is, Sale Deed or a Gift Deed. Further, can you provide me with a listing of a couple of attorneys in Mumbai who can help me in this execution so that I can communicate with them. THANKS in advance for your help in this matter. Nirmala Patel
Asked 4 years ago in Property Law
Religion: Hindu
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6 Answers
A deed of reconstitution of partnership can be made by which you will the exit the partnership and your share will be transferred to your elder sister with consent and concurrence of other partners of the firm
The reconstitution deed has to be notorised before public notary and thereafter filed with the Registrar of Firms
You can do the aforesaid through a power of attorney holder whom you can appoint by a power of attorney which can be signed by you before the public notary in the USA and thereafter attested by the Embassy/Consulate in the USA OR in the alternative you can sign before Notary Public and then obtain a Certificate of Apostille. This duly notorised and attested document can then be couriered to India to the grantee who will then have it stamped for the applicable stamp duty and thereafter it can be used by the grantee for executing the deed of reconstitution of firm on your behalf and for filing it with the RoF
You can transfer your shares in the company to your sister either by a registered sale deed or by a registered gift deed.
If you cannot travel to India for carrying out this task, you may execute a POA deed in favor of any close relative in India who shall execute the desired task on your behalf in India.
You may consult a lawyer either from this forum or outside for more details to execute the proposed task successfully.
You can contact me for the same I will assist you.
As per Partnership Act any property it's rights are held by the partnership firm not by any individual partner. All partners works as an agents of the firm.
A partner can retire from the partnership. On such retirement his accounts are settled as per partners profit sharing ratio. Any revaluation profit or loss is adjusted from his capital and net proceeds if any is paid out. All assets and liabilities remains with the partnership firm.
So contact with some lawyer at your place and discuss the matter in details.
You should have made new shareholder agreement and in that mention gift deed and same could have registered with the company registrar. The person who is staying here you could have gave him or her full rights and later transferred all shares on her name. Do let me know all your history so can implement it accordingly.
