The shares that are held by the partners on behalf of the partnership firm in their individual capacity as beneficiary, can that be transfered to the partner? If yes, what is the procedure involved?
Sumeet Singh 23 August 2023
The shares that are held by the partners on behalf of the partnership firm in their individual capacity as beneficiary, can that be transfered to the partner? If yes, what is the procedure involved?
T. Kalaiselvan, Advocate (Advocate) 24 August 2023
A share of partners in a partnership firm can be transferred with the consent of other partners. This requirement protects the interests of the existing partners and ensures that the new partner is accepted by all the partners in the firm.
According to the provisions of the Indian Partnership Act, 1932, all the partners are obliged to follow certain rules and regulations and one such rule is that a partner is not allowed to transfer his share to an outsider without the consent of other partners.
Partnerships are generally guided by a partnership agreement, which may allow or restrict transfers of partnership interest. Partners must follow the terms of the agreement.
Sumeet Singh 24 August 2023
Hello sir. I am on same page with you. However, I wished to know that the shares held by the partners on behlaf of the partnership firm, can those shares be transfered to the individual capacity of the partners to them?
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