CA
                
                   7205 Points
                   Joined January 2010
                
               
			  
			  
             
            
             
	Though nominal partner neither contributes capital nor takes active part in the management of business is liable for the debts of the firm.
	
	The terms among the partners are contractual. The provisions of the Partnership Act is silent about admission of a nominal partner / partner for a 'particular division'. In such a case the partners may include relevant clause(s) in their amended / supplementary deed of partnership to give effect to the nominal partnership of new partner for a particular division. However, such a nominal partner is liable jointly and severally for the acts of other partners or all partners together.