Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Risk sharing in partnership firm

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2014 Please suggest me on following point
1.Can only one partner (out of two ) in the partnership firm bear all the risk in a licence based business i,e Trading in Explosives ?

2.Can only one partner out of two possess all the operating rights and powers i.e Like bank transactions etc.

Guest

Guest (Expert)

23 December 2014 Regarding your first question, you would need to an LLP to do that. In a partnership registered under the Partnership Act, 1932, such a provision does not hold true.

Regarding the second question, operating rights and/or powers can be restricted via clauses in the partnership deed. You should approach a professional to draft a deed that legally and enforcibly includes all such clauses that you need.

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

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!