Partnership Act 1908

Question: Discuss about the Partnership Act 1908. Answer: Management role in the Partnership Deed The Partnership Act 1908 sets out the power and obligation of the partners in a partnership firm. The partners in the partnership deed are entitled to take part in the management of the business. All the partners may freely access to the accounts of the firm. Section 31 They are entitled to receive 5% interest on the capital invested in the firm. Section 27 (c) The net profits and the losses of the partnership firm shall be divided between the partners in a proportion specified in the partnership deed. The partners are also entitled to the weekly drawings out of the partnership accounts as per the share of profits held by each partners. For the purpose of partnership, a partner making an actual payment beyond the capital, which such partner has agreed to subscribe, shall become entitled to interest @ 5% per annum from the date of payment or advance. On the other hand, the deed specifies that a partner shall not be entitled to interest on the capital subscribed by such partner prior to the ascertainment of profits. Section 27 (a) They are entitled to be indemnified by the firm for any payments made for the proper conduct of the firm. Section 3 If the parties enters into a partnership deed for undefined time the partnership may be dissolved from the date mentioned in the notice or from the date of communication of such notice (Khoroshilov, 2017). Section 35(1) (c) Whereas in the deed it is mentioned where no term is fixed or the term is expired the partners agrees to continue with the partnership without fixing any further terms any partner may determine the partnership after giving three months notice to other partners. Under the Partnership Act 1908 court is dissolves a partnership agreement under the following grounds: Section 38 (a) Section 38 (b) Section 38 (c) Section 38 (d) Section 38 (e) Section 38 (f) The partnership deed did not include section 38(e) of the Act where a court may dissolve a partnership agreement if it opines that the partnership cannot be carried on without a loss. The partners must discharge certain duties and perform legal obligations. They must render true accounts of the firms as stated in the Act. Section 31 The firm shall not be bound by the acts of the partner if the partners have the notice of such agreement as stipulated by the Act. This statutory provision has not been included in the deed. Section 11 The relevant sections for partners accountability towards the firm for any personal profits or benefits earned from the use of the firms property or name, without consent of other partners (Corwin Ciampi, 2016). Section 32 Section 33 A majority of partner may be expelled only if power has been conferred between the partners under the Act, which has not been included in the deed. Section 28 References Corwin, L. D., Ciampi, A. J. (2016).Law Firm Partnership Agreements. Law Journal Press. Khoroshilov, Y. (2017). Partnership Dissolution: Information and Efficiency.