The presentation covers the basics of Partnership Act

1. PARTNERSHIP ACT
By: Bhanu Arora

2. WHAT IS PARTNERSHIP
 A type of business organization in which two or
more individuals pool money, skills, and other
resources, and share profit and loss in accordance
with terms of the partnership agreement.

3. EXAMPLE OF PARTNERSHIP
 Let's say that Dottie and Dave decide to open a
clothing store. They decide to name the store D.D.'s
Duds. Dottie and Dave don't need to do anything
special in order to form a general partnership. Once
Dottie and Dave agree to form the business, it's
automatically considered to be a partnership.

4. ADMITTING NEW PARTNER
 A new partner is admitted in a partnership firm due
to the following reasons:
1. Need for additional capital for the expansion of the
business as also the need for bringing fresh
energy into the business
2. Sometimes when an old partner retires, then it
becomes necessary to admit a new partner.
INTRODUCTION

5. EXAMPLE
 Lets consider that there are 2 partners in a venture
and one of the dies an accident, in this case there
is a need to add another partner in the business.

6. REMOVAL OF A PARTNER
INTRODUCTION
 A partner may be expelled from a firm by majority of
the partners only if:
1. The power to expel has been conferred by
contract between the partners.
2. Such a power has been exercised in good faith for
the benefit of the firm.
 The partner who has been expelled must be given
reasonable opportunity to explain his position the
cause of his expulsion.

7. DIFFERENT GROUNDS OF EXPULSION
 Breaching the partnership agreement or otherwise
failing to carry out the partner’s obligations under
the agreement
 Being charged with, or convicted of, a crime
 Professional misconduct, or
 Filing for bankruptcy.

8. EXAMPLE
 if a partner decides to backdate an agreement to
make your business look older than it is, or if you
sign a witness's name who wasn't actually present,
you've committed fraud, hence the partner can be
removed.

9. RIGHTS AND DUTIES OF PARTNER

10. RIGHTS OF A PARTNER
 Every partner has a right to take part in the conduct
and management of business.
 Every partner has a right to be consulted and heard
in all matters affecting the business of the
partnership.
 Every partner has a right of free access to all
records, books and accounts of the business, and
also to examine and copy them.
 Every partner is entitled to share the profits equally.

11. DUTIES OF A PARTNER
 Every partner must be just and faithful to the other
partners.
 A partner is bound to keep and render true, proper,
and correct accounts of the partnership and must
permit other partners to inspect and copy such
accounts.
 Every partner is bound to indemnify the firm for any
loss caused by his willful neglect or fraud in the
conduct of the business
 A partner is bound to act within the scope of his
authority

12. DISSOLUTION
 Dissolution implies breaking up of any constituted
body of person. The dissolution of a firm refers to
discontinuation of the mutual relations existing
between all the partners of the firm.

13.  When there is an end to the relation between some
of the partners only it is called Dissolution of the
Partnership.
DISSOLUTION OF PARTNERSHIP

14. EXAMPLES
 When any one of the partners retires or becomes
implicated from continuing as a partner due to
death, insolvency, transfer of partnership, interest
or insanity, the relationship between such a partner
and others comes to an end.