Profit sharing system
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 December 2013
Hi,
I'm Working as a Financial Analyst in a 6 years old partnership firm. There are 7 partners who was shared their profit for last 5 years in the proposed ratio which they agreed . It's an architectural firm. Every partners are involving in project works. Here 2 or 3 partners earning much than the others.So for the past 5 years those earning partners are contributing more money for the office development than others. Now they felt that the partners who are contributing less money for office development are also enjoying the whole benefits. They reported me about this issue and asked me for some plans to change sharing system. Please give me a suggession for this issue. Is it possible to share profits against the ratio which is agreed in deed?
I'm Working as a Financial Analyst in a 6 years old partnership firm. There are 7 partners who was shared their profit for last 5 years in the proposed ratio which they agreed . It's an architectural firm. Every partners are involving in project works. Here 2 or 3 partners earning much than the others.So for the past 5 years those earning partners are contributing more money for the office development than others. Now they felt that the partners who are contributing less money for office development are also enjoying the whole benefits. They reported me about this issue and asked me for some plans to change sharing system. Please give me a suggession for this issue. Is it possible to share profits against the ratio which is agreed in deed?
Vivek Hebbar
(Expert)
24 December 2013
You can amend the partnership deed with a revised profit sharing ratio. The other alternative is to structure the remuneration of the partners so as to compensate the more working partner.
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