Rajan (Director) 16 January 2011

Change in the Partnership Agreement

Current Situation
Good Day. My friend and myself started the company in a partnership mode, My friend as a Managing Director and myself as a Director.

Future requirements
However, later my friend would like to discontinue this partnership and also I would like to add 2 of my colleagues to join as a Director, taking myself as a Managing Director.

Question:

What is the procedure to transfer the title from my friend to myself (MD title)?
What is the procedure to include my colleagues in to partnership mode (as directors) ?
What is the time & cost to change the above request?
and the Process.

Regards,
Rajan

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1 Replies

M.V.GIRI (ADVOCATE & TAX CONSULTANT) 16 January 2011

Dear Sir,

There is no namanclature of Managing Director and Director. It may be Managing Partner and Partner. You may admit two of your friends into the partnership firm.Firstly you have to take a letter from the retiring partner for his desire to retire from the firm. Or else you may reconstitute the deed of partnership stating firstly the retirement clauses and then the admission of new partners with new terms and conditions. The deed is called as relinquishment and reconstituted partnership deed. Only you have to execute the new above deed with sufficient stamp duty and the expenses towards the registration of the new deed with the registrar of firms under the Indian Partnership ACt.