Reconstituted deed

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2013 Is it possible to reconstitute partnership deed instead of amending when there is a change in the profit sharing ratio?. If yes, can address of the partners changed in this reconstituted deed.Dear Experts..pls share ur expert knowledge on the above subject

Querist : Anonymous

Querist : Anonymous (Querist)

20 June 2013 experts.. pls reply asap.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
Follow

20 July 2025 Great question! Let’s clarify the concepts around reconstituting vs amending a partnership deed, especially regarding changes in profit sharing ratio and partner details.

1. Is it possible to reconstitute a partnership deed instead of amending it when there is a change in profit sharing ratio?
Yes, it is possible, but the terminology and practice depend on the extent of the change.
Generally:
Amendment means making changes to certain clauses or terms within the existing deed without creating a new document.
Reconstitution means drafting a new partnership deed to replace the old one, reflecting significant changes in the partnership.
When to Reconstitute?
A partnership deed is usually reconstituted when there is a fundamental change in the partnership structure, such as:

Change in profit sharing ratio that is substantial or part of multiple changes,
Admission of a new partner,
Retirement or death of a partner,
Change in capital contribution,
Change in firm’s name or business.
So, if the change in profit sharing ratio is significant or accompanied by other changes, reconstitution is preferred to ensure clarity and avoid confusion.

2. Can the address of partners be changed in a reconstituted deed?
Yes, absolutely.
A reconstituted deed is essentially a fresh partnership agreement and can include any updated information about the partners, including:
Addresses,
Contact details,
Capital contributions,
Profit sharing ratios, and
Any other terms.
Additional points:
The reconstituted deed should be signed by all partners to make it legally valid.
If the partnership is registered, the reconstituted deed (or the amendment) should be filed with the Registrar of Firms as per local laws.
Proper documentation helps avoid disputes and provides clear legal standing.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now