Right of partner to manage business
KAMLESH KUKREJA
(Querist) 18 December 2012
This query is : Resolved
there are 3(A,B,C) partners in partnership.at the time of entering into partnership(oral agreement) they decided that only A will manage the business & B & C will only review the operations of business.after sometime B also want to manage day to day activities but A refuses and says that according to partnership deed only A can manage day to day activities but B says that he have right to manage business as he is partner
my question is who is correct A or B?
Hemant Agarwal
(Expert) 19 December 2012
1. Partnership is a concept of "Mutuality". The Partnership deed would have defined the responsibities of "A" and B, C. AND not the restrictions on business management, on B & C.
2. IF "B" feels unsatisfied about the functioning of "A", THEN "B" has every right to join in to manage the partnership business and there is nothing illegal or biased about it. However appropriate amendments may be made in the partnership deed, should the business involve dealing with Statutory agencies.
Keep Smiling .... Hemant Agarwal
Kishor Mehta
(Expert) 19 December 2012
Sir/s,
With due respect to everybody, I opine that the terms and conditions, as specified in the partnership deed, are the only factors to govern the issues of dissents between the partners.
No partner can override the terms of the partnership agreement.
Regards,
Kishor Mehta
Raj Kumar Makkad
(Expert) 19 December 2012
Kishor! No person is adverse to your advice as the basic thing is only agreement/deed deciding the rights and liabilities of the partners but if the rules are against the Act or public policy then only law of land shall prevail.
