Indian Partnership Act 1932
Indian Partnership Act
1932
Presenter
Pankaj Rao
B.Com ( Honours )
II Semester
Content
Definition of Partnership
Essentials element of partnership.
Kinds of partners
Types of partnership
Rights of partner
Partnership Deed
Difference Between Partnership firm and
Company
Definition of partnership
( Acc. to Partnership Act 1932 )
“ Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any one of them acting for all. ”
Other Definition
“ A business organization in which two or more individuals manage and operate the business.
Both owners are equally and personally liable for the debts from the business. “
4
Essential elements of partnership:
Association of two or more persons
Partners must be competent
There must be existing business
Contract may be Expressed or implied
Sharing of profits
Prevalence of mutual agency.
TYPES OF PARTNERS
Active Partner
•
A full-fledged partner.
Contributes to capital and takes active part in the management of the firm.
Bears unlimited liability.
Sleeping Partner
•
Contributes to capital, but does not take active part in management. •
Bears unlimited liability.
•
Not known to outsiders.
TYPES OF PARTNERS
Limited Partner
A partner limited to the extent of his/her share in capital and profits. Not entitled to take active part in the management of firm’s business. Partner in Profits only
Partner shares only the profits, not the losses.
Not allowed to take part in management.
TYPES OF PARTNERS
Nominal Partner
Neither contributes capital nor takes part in management. Only lends his name.
Does not have a share in profits or losses, but is liable to outsiders for the debts.
Minor as a Partner
A minor is a person who has not completed 18 years of age. A minor cannot become a partner because he is not qualified to do so. However, minor can be admitted to the benefits of the
1932
Presenter
Pankaj Rao
B.Com ( Honours )
II Semester
Content
Definition of Partnership
Essentials element of partnership.
Kinds of partners
Types of partnership
Rights of partner
Partnership Deed
Difference Between Partnership firm and
Company
Definition of partnership
( Acc. to Partnership Act 1932 )
“ Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any one of them acting for all. ”
Other Definition
“ A business organization in which two or more individuals manage and operate the business.
Both owners are equally and personally liable for the debts from the business. “
4
Essential elements of partnership:
Association of two or more persons
Partners must be competent
There must be existing business
Contract may be Expressed or implied
Sharing of profits
Prevalence of mutual agency.
TYPES OF PARTNERS
Active Partner
•
A full-fledged partner.
Contributes to capital and takes active part in the management of the firm.
Bears unlimited liability.
Sleeping Partner
•
Contributes to capital, but does not take active part in management. •
Bears unlimited liability.
•
Not known to outsiders.
TYPES OF PARTNERS
Limited Partner
A partner limited to the extent of his/her share in capital and profits. Not entitled to take active part in the management of firm’s business. Partner in Profits only
Partner shares only the profits, not the losses.
Not allowed to take part in management.
TYPES OF PARTNERS
Nominal Partner
Neither contributes capital nor takes part in management. Only lends his name.
Does not have a share in profits or losses, but is liable to outsiders for the debts.
Minor as a Partner
A minor is a person who has not completed 18 years of age. A minor cannot become a partner because he is not qualified to do so. However, minor can be admitted to the benefits of the