Dear Querist
submitted a supplementary deed before Registrar of Firm is sufficient in which all the detail of changes should be mentioned.
Partnership firm partners to modify the stake
Two Partners of business firm has 50% stake. One partner wants a part of asset sold and take the proceeds for his personal use and reduce his stake say from 50 to 40%. The second partner agrees to this proposal. If the simply reflect the Stake change in writing a new Partnership deed and send a copy to 'registrar of firms' is enough or is this new deed needs to be registered at Sub registrar office paying charges for the 10% relinquishment ? despite the same two partners continuing as partners. ( The asset sale will be any way registered to the third party with necessary charges and the sale proceeds will be to the company account and Capital gains would be paid ) Please explain the legally acceptable procedure.
Asked 10 years ago in Business Law
6 Answers
1) since one partner wants to reduce his stake in partnership firm from 50% to 40%it can be done by filing of supplementary deed before the Registrar of Firms .
2) suplementary deed should be duly stamped and registered
You can file a supplementary deed from the date he wishes to do before the registar.it must be registered and stamped accordingly
Hello,
Since it is an existing partner who wants makes the changes by reducing the stake from 50% to 40% by sale of 10% and as the other partner is agreeable to the change all that is required is to submit a Supplementary Deed before the before Registrar of Firms with the changes you intend to incorporate and have it duly registered with requisite stamp.
Since both the partners are into a positive agreement with respect to executing the proposal of the first partner, a supplementary deed prepared and filed to the registrar of firms will suffice. The supplementary deed has to be registered and the requisite stamp duty paid thereon.
1. There are two ways for going about this,
2. If you do not apprehend any future litigation from the other partner, just one MOU or unregistered supplemantary deed will suffice which will be economical for yoy,
3. If you want to be strictly formal, get the said supplementary deed registered by paying the necessary stamp duty and registration fee.
