Partnership
Ysil Karunai
(Querist) 17 December 2012
This query is : Resolved
Dear Sir,
There is a dispute between the two partners say A and B (they are the only partners in a registered firm) and each partner willing to continue the business now as a proprietory concern as soon as the firm dissolved. Since A was a Managing partner named in the partnership deed and claiming he has the substantial power and he has a right to continue the business in his own. Further B also claiming as both the partners have equal rights, since because the A was Managing Partner he doesnt own any extra power as per partnership act.
Please Clarify who's claim is valid and suggest the best remedy for this?
Devajyoti Barman
(Expert) 17 December 2012
Whether A id managing partner or not unless he is given special privilege in the partnership deed , both have equal rights to start proprietary business afresh.
Ysil Karunai
(Querist) 17 December 2012
Thank you sir.
But both the partners are willing to continue the same business with their existing clients as proprietory concern. Further the same name of the firm will continue in their proprietory business. Please Sort out.
Raj Kumar Makkad
(Expert) 18 December 2012
After dissolution of partnership legally, any partner can do the same business in his own name, however, the partner leaving the business is required to be compensated full including the credit of the firm.
