Transfer of proprietorship of a firm
amit
(Querist) 16 February 2009
This query is : Resolved
dear sir,
X is proprietor in his firm, but now he become a lawyer .X wants to transfer his firm to his uncle(X mother is not interested & X father is govt.servant)X wants to become legal advisor in that firm. X wants that bank transaction & other matters of firm should be in X's hand too. any matter or dicision of firm cannot be done without concent/signature of X
my question is how can it possible for X to do this. so that nobody can take wrong benifit
Manish Singh
(Expert) 16 February 2009
get into a partnership firm having you and your uncle as partners. include clauses what suit your needs viz no bank transaction can be done without x's written consent and so.
AEJAZ AHMED
(Expert) 16 February 2009
DEAR AMIT,
Rightly answered by Learned brother Manish,
(a) Creat a Partnership firm between You and Yor Uncle;
(b) Get Register the Partnership firm with the Concerned registrar of state;
(c) Include the clauses in Partnership Deed with regards to the following point as said by you in your query:
(i) Stood yourself as Active Partner and and your uncle should be Sleeping Partner
(ii) You to be a Legal Advisor of that firm.
(ii) Maintain Joint Account of the Firm, stood yourself as Signatory, to that Account as well in General to that Firm.
M. PIRAVI PERUMAL
(Expert) 16 February 2009
In my view you cannot perform the dual role as a lawyer and partner of a firm. You want to be legal advisor of the firm and at the same breathe you also want to have control over the bank accounts. Eagerly awaiting my learned senior friends opinion in the matter.
Manish Singh
(Expert) 17 February 2009
yes , to some extent I agree with Mr. Perumal but the X can be sleeping partner of the firm who shall not be managing day day to business of the firm. still he can have control over the monetary transactions if the clauses so provide.
ARVIND JAIN
(Expert) 17 February 2009
HOW THAT IS POSSIBLE MANISH ?I agree with Mr. Perumal.PL SEE BAR COUNCIL RULES.
Manish Singh
(Expert) 17 February 2009
yes , I agree with Mr.Jain & MR. Perumal.
Sorry Amit, under Chapter iii rule 2 of the Bar council of INDIA Rules, you are barred from getting into partnership or any other arrangement for remuneration except with an advocate. still you can get into a partnership but can not fetch any monetary benefits under such arrangement but still you can incorporate a clause in the deed making any transaction void without your written permission.
Sushil Kumar Bhatia
(Expert) 17 February 2009
Dear,
If you have enrolled in Bar council for Advocate on roll you cannot envolve yourself in any business activities otherwise you will be treeated as advocate's professional misconduct if you are married you can run your firm in your wife's proprietorship or partnership
A. A. JOSE
(Expert) 17 February 2009
I endorse views of learned experts S/Shri.SushilKumar Bhatia, Manish Singh and Mr.Perumal.
Adv.Shine Thomas
(Expert) 18 February 2009
I agree with the views of Mr.SushilKumar Bhatia
Manish Singh
(Expert) 18 February 2009
Dear Mr. Bhatia, I support your views but I would like to make it clear that still he can be a sleeping pertner n a firm but the only condition exists there is that he shall not get any benefit in terms of money as the rule says "remuneration". he can have control over the firm while rendering free legal services to the firm.
so the best way out shall be to make three partners therin including his father or so.
MANISH
(Expert) 18 February 2009
Dear Friend,
It seems that you want to have both the sides of the coin in your favour. It cannot be possible, it shall be misconduct. While filling the form for enrolment, one has to mention about his associateship with any other business or profession, whether sleeping or not, and on such basis, you may not be allowed to get enrolled. Mr. Jain, Mr. Palnitkar, Mr. Bhatia are correct. You may either enrol yourself as Advocate or do business.
Manish Singh
(Expert) 18 February 2009
Dear Manish, please go through the said rule and try to understand it first. the condition prescribed there is that it must not be for remuneration.
the only condition is there that he must inform the bar council about the same. if the bar bonafidely rejects the same he will have to do away with this partnership.
