2. Q9. What is the general rule on the expulsion
of partners and state whether it is possible for
partners to expel a fellow partner. (15 marks)
3. Whether it is possible for partners to expel a fellow
partner.
4. The general rule of the expulsion of members declares
that unless there is a provision to the contrary, Section
27 provides that a partner may not be expelled from the
partnership, even if a majority wants him to leave. To
avoid the effect of this provision, it is necessary to
expressly state the powers of expulsion, not only by the
majority, but also on other grounds.
5. Referring to Section 27 of the Partnership Act 1961, it IS
possible for partners to expel another partner from the
firm if in the agreement between the partners, the power
for expulsion is conferred expressively in the agreement.
This means that if let’s say that the majority of the
partners agreed to expel another partner and the power
of expulsion by majority is expressed in the agreement,
then the expulsion can be made possible.