Power of attorney
ravi
(Querist) 13 March 2014
This query is : Resolved
three persons apply for liquor license separately on the basis that they will share profit equally but no written document
let them A,B,C
now person A gets license from the govt on his name and he sign a power of attorney in favor of person B regarding the license obtained from the govt.
now person A and B not ready to make any legal contract with person C e.g. partnership deed and say that business works by making believe in each other
however , person A is ready to sign on partnership deed but only on plain paper not on stamp paper
will it be sufficient as person A is the main holder of license in case of any dispute.......
please provide me a solution .....
thanks in advance
R.V.RAO
(Expert) 13 March 2014
in business,belief is good.but not sufficient.if you all 3 want to lead business without any legal hassles in future,you must enter into a partnership with a mutually acceptable profit sharing ratio.such partnership may or may not be registered.
but boil down all arrangements to writing.the future will be peaceful and all of you can trust each other without any distrust or suspicion.banking arrangements should also be mutually acceptable to all like cheque signing etc...
ravi
(Querist) 13 March 2014
can person A even after executing power of attorney can make a partnership deed with person C ?
will it be valid if make a deed on plain paper then do franking on plain paper..? or is required to be made on stamp paper ?
and what will be legality of that deed and power of other party in case of any dispute ?
thanks in advance....
R.V.RAO
(Expert) 14 March 2014
power of attorney of A given to B is only in respect of liquor licence( obtained from govt. in your own words).
apart from licence job there are many issues in the day to day business matters.
power of attorney only authorises B to do certain things. it cannot replace duly made partnership agreement on stamp paper (better even regd,),writing clearly profit ratios,nature of duties etc..
it will be an answer for any furture disputes.
if you need you may amend the partnership deed in future as you all decide.
approach a lawyer for registering your partnership and the deed. do not hesitate for such important exp.
any legal disputes will be settled based on the regd.deed in future.
Advocate. Arunagiri
(Expert) 14 March 2014
What is the contents of the POA?
Whether a,b.c are still interested in entering a partnership deed?
Rajendra K Goyal
(Expert) 14 March 2014
It would be advisable to enter into a duly registered partnership among ABC to keep in black and white all the terms and conditions agreed upon among them.
POA gives rights to B and principal remains A.
ravi
(Querist) 14 March 2014
Thanks to everyone
ravi
(Querist) 14 March 2014
Thanks to everyone
T. Kalaiselvan, Advocate
(Expert) 14 March 2014
I agree with Mr. R.K. Goyal's advise on the subject. It is better to cancel the power of attorney deed given to B, create a partnership deed among all the three by reducing the terms and conditions thereon to it in writing, enjoy a secured and safe business with the profits and losses shared amicably among all the partners. The partnership deed can be made on plain paper too, it can either be registered or not, notarized or not.
ravi
(Querist) 24 March 2014
thanks for solving for my query
