Partnership ownership
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 February 2014
Me and my son are partners in a partnership firm.
The terms of agreement say equal allocation of profit/loss and equal remuneration to both the partners.
Capital is in 90:10 ratio.
My question is, in legal terms are we considered as 50:50 partners or 90:10 partners?
What is the shareholding of each of us? if the firm is sold then at what ratio the proceeds will be distributed?Are there any Court rulings?
The terms of agreement say equal allocation of profit/loss and equal remuneration to both the partners.
Capital is in 90:10 ratio.
My question is, in legal terms are we considered as 50:50 partners or 90:10 partners?
What is the shareholding of each of us? if the firm is sold then at what ratio the proceeds will be distributed?Are there any Court rulings?
21 February 2014
shareholding of profits shall be 50:50 as u wrote above it is mentioned in agreement.
agreements is deciding factor and not capital.
agreements is deciding factor and not capital.
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Querist : Anonymous
Querist :
Anonymous
(Querist)
21 February 2014
So if the firm is sold/dissolved then at what ratio proceeds will be distributed?
21 February 2014
that must be provided in agreement if not then in profit sharing ratio or capital ratio as mutually decided by partners.
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