Partnership

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This query is : Resolved

Rattan Yadav (Querist)

15 October 2014 We have a Partnership business. It has three (3) partners . A, B and C with equal shares in profit.

Now, we want to remove one of the partner. How can we remove him?? He is unwilling to leave the firm.

Please advise any way out

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 October 2014 If there is any misconduct ie fraud etc done by any partner, majority of partners can remove that partner but again this all depends upon the nature of the partnership deed.

if the partnership is at will, the partnership will be dissolved in the said case.

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Rattan Yadav

Rattan Yadav (Querist)

16 October 2014 Dear Sir,
Thanks for your reply.
Please advise what we should do so that in future if we want to remove a partner by majority, we can do it without dissolving the firm.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 October 2014 You have to suitably draft the partnership deed.

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Rattan Yadav

Rattan Yadav (Querist)

16 October 2014 Sir,
Please refer sections which a can use to draft such deed.

I will be very grateful to you.

Rattan Yadav

Rattan Yadav (Querist)

16 October 2014 Sir,
Please refer sections which a can use to draft such deed.

I will be very grateful to you.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 October 2014 That, NOTWITHSTANDING anything contained in the Indian Partnership Act it is hereby mutually agreed to by and between the parties that majority of the partners can remove one or more partners from the partnership.

You can draft the deed as above.

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