ena ena (retail manager) 31 October 2020
For a small Partnership firm with only 2 partners, can it be mentioned on the partnership deed that both of them are managing partners.
Will this be in violation to any of the laws prevailing in India??
There is a requirement for Travel agent licensing that only Managing Partner can apply for the license.
ena ena (retail manager) 01 November 2020
An active partner mainly takes part in the day-to-day running of the business and also takes active participation in the conduct and management of the business firm. He carries the daily business activities on behalf of other partners. He may act in different capacities such as manager, advisor, organiser and controller of affairs of the firm. To be precise, he acts as an agent of all the other partners in order to run main functions pertaining to business. Furthermore, subject to the clause in the partnership deed, the active partner can withdraw remuneration from the firm
With regards to his role in the partnership, his role is of utmost importance. Therefore, if at all he wishes to retire from the partnership firm he must give a public notice about his decision. He gives a public notice in order to absolve himself from liability and acts done by the other partner. If he doesn’t issue a public notice declaring his retirement he would be held liable for the acts done by other partners post-retirement also.