Parntership firm
Hari
(Querist) 20 December 2016
This query is : Resolved
Dear Sir,
We have a partnership firm which was incorporated in 2015 and doing online selling business in Chennai . We are four partners in the following shareholding pattern-30/30/30/10. One of our partner was managing the business who is holding 30% and getting a fixed salary all others were not seriously involved business were not paid any money as the income was low after adjusting the overheads the abovesaid partner1s salary . There were no investment made by the abovesaid partner who was getting salary but the other partners put some capital in the initial stages .Although the agreement clearly stated Rs 25000/pm as salary to abovesaid partner were actually getting Rs 80000/ per month . Now due to the misunderstanding( he has parrelly started an another organization without our approval in the same premises ) we want to remove the partner ( all other 3 partners are in agreement ). Kindly advise us on the following
1. How can I remove this partner ?
2. Can we do it without dissolving the partnership firm and retain the same name
3.If we have to dissolve the firm , are we laible to pay comensation to this guy
. What is the best possible solution in ur opinion . we want to get rid off this guy from our team .
4.Can we reconstitute the partnership and retain the same firm1s name without his consent letter .
Kindy advise
Hari
Kishor Mehta
(Expert) 21 December 2016
Sir,
It will depend on the terms of partnership deed.
Good luck,
Kishor Mehta
Rajendra K Goyal
(Expert) 21 December 2016
you said:
How can I remove this partner ?
reply:
Partner deed need to be referred. Generally if any partner does not resign / amicable settlement not possible, dissolve the partnership, prepare the final accounts on date and reconstitute with remaining partners.
You said:
Can we do it without dissolving the partnership firm and retain the same name
Reply:
Clauses of partnership deed need to be referred.
Rajendra K Goyal
(Expert) 21 December 2016
You said:
If we have to dissolve the firm , are we laible to pay comensation to this guy
Reply:
In amicable settlement it may have to be paid as per settlement. In dissolution otherwise, distribution of assets would be in accordance with the provisions of partnership deed.
You said:
What is the best possible solution in ur opinion . we want to get rid off this guy from our team .
Reply:
Amicable settlement is best for all.
Rajendra K Goyal
(Expert) 21 December 2016
You said:
Can we reconstitute the partnership and retain the same firm1s name without his consent letter .
Reply:
Amicable settlement can make it possible, otherwise retiring partner may ask for goodwill.
M V Gupta
(Expert) 26 December 2016
I agree with Mr. Goyal's views. If amicable settlement for voluntary retirement of the person concerned is not possible, Dissolution of the firm is the best alternative. In this case (i.e., dissolution) the partners will be entitled to their respective shares in the assets of the firm as per the deed of partnership. The deed of dissolution may contain provisions relating to retention of right to some of the partners to form a new partnership firm with the same name and business content.
R.K Nanda
(Expert) 28 December 2016
nothing to add more.
