Partnership law
Shrikant Parulekar
(Querist) 21 February 2014
This query is : Resolved
Me and my son are partners in a partnership firm. The terms of agreement say equal allocation of profit/loss and equal remuneration to both the partners. Capital is in 90:10 ratio. My question is, in legal terms are we considered as 50:50 partners or 90:10 partners? What is the shareholding of each of us? In case we sell/dissolve our firm then at what ratio the proceeds shall be distributed?
Are there any Court rulings?
SHIRISH PAWAR, 7738990900
(Expert) 21 February 2014
in legal terms are we considered as 50:50 partners or 90:10 partners?
Your partnership will be 90:10 ratio.But the profit sharing will be 50:50
What is the shareholding of each of us?
90:10 ratio
In case we sell/dissolve our firm then at what ratio the proceeds shall be distributed?
90:10 ratio
Are there any Court rulings?
search indiankanoon.org
Rajendra K Goyal
(Expert) 21 February 2014
Your profit sharing is 50 - 50% with capital sharing of 90-10%. On dissolution the capital would be divided in 90-10%.
The terms of partnership agreement need to be seen and any thing contrary to be decided in accordance of partnership deed.
R.V.RAO
(Expert) 22 February 2014
As sri sirishji and sri goyalji advised,profit sharing 50:50,
cap.sharing if running or dissolved 90:10.
Dr J C Vashista
(Expert) 23 February 2014
In the terms of Memorendum of Asociation where capital is shared athe ration of 90:10% and profit sharing is 50:% appears to be something odd.
Please contact a local lawyer to examine the MOA where dissolution of partnership is mentioned.
R.V.RAO
(Expert) 23 February 2014
Dr,sri vashishtaji,MAY I BE ALLOWED TO SAY, THE following
yes as you say,.ratios agreed are odd.
But then, The indian partnership act 1932(P.A) has not evolved much with passage of time, UNLIKE THE COS ACT 1956(NOW COS Act 2013),where the Memorandum of association and Articles of Association of the co. have been structured TO COPE WITH the advent of time and evolution of corporate structure in india.
Dr J C Vashista
(Expert) 24 February 2014
Dear Sh. Rao ji,
I fully agree with you, there is no such mandate/legislation to cope up with such situation, we can just interpret the law framed by the parliamentarians/politicians.
R.V.RAO
(Expert) 24 February 2014
Thanks.Dr.sri J.C.Vashistaji.
T. Kalaiselvan, Advocate
(Expert) 23 February 2014
