admission, expelled, death, retirement, rights and duties of those partners

1. INCOMING AND
OUTGOING OF A
PARTNERS
GROUP4

2. Contents
 Meaning of Partnership deed
 Incoming partner or admission of a partner
 Rights and duties of a incoming partners.
 Outgoing Partner i.e. Retirement & death of
a Partner.
 Rights and duties of outgoing partners .

3. Meaning of Partnership Deed
 The document which contains the terms of a
partnership as agreed among the partners is
called “Partnership Deed”.
 It will formed an legal agreement.
 It can be written or oral.
 It is to be duly stamped as per the Indian
Stamp Act ,and duly signed by all partners.

4. INCOMING PARTNERS
The new partner who will be joining the
partnership firm. It is also known as a Admission of
a partner.
Partners to a firm are free to develop any procedure
or understanding for inducting a new partner into
their firm.
The following rules will apply in the absence of any
agreement.

5. Rights and duties of a Incoming
partners
New partners to be introduced into an existing
partnership firm with the consent of All partners.
If there are Seniors partners they can induce new
partners.
Incoming partner is only liable for the transactions
which were made after he has joined the firm.

6. Outgoing Partner
 A partner who is going to leave a particular firm
with purposely or to he/she might be died or
expelled by a firm. Then somewhere it’s a
process of outgoing partner.
 It can be in a form of;
 Retirement of a partner,
 Expulsion of a partner,
 Insolvency of a partner,
 Death of a partner.

7. Retirement of a Partner
 By consent: A partner can be retired with a consent
of all the partners.
 By express agreement: If there is any express
agreement among the partners as to how an
outgoing partner will leave the firm then that
agreement should be followed.
 In the case of partnership at will: By Notice ;
An outgoing partner
can leave the firm by giving notice to all the other
partners of his intention to retire.

8.  Liability for the acts of the firm done before
retirements: A retiring partner remains liable
for all the acts of the firm done up to the date
of his retirement.
 Liability for the acts of the firm done after
retirements: A Retiring partner will not be able
for the acts of the firm done after his
retirement if a public notice of his
retirement has been given.

9. Expulsion of a Partner
 A Partner cannot be ordinarily expelled from the firm. However,
he can be expelled by following a prescribed procedure:
 The power of expulsion should be given to a partners by an
EXPRESS CONTRACT between them.
 The power of expulsion should be exercised by MAJORITY OF
A PARTNERS.
 The power of expulsion should be exercised in absolute GOOD
FAITH.
ALL THE CONDITIONS MUST BE SATISFIED BEFORE A
PARTNER IS EXPELLED FROM A FIRM.

10. INSOLVENCY OA PARTNER
 “When a partner in a firm is adjudicated an
insolvent, he ceases to be a partner on the date
on which the order of the adjudication is made,
whether or not the firm is thereby dissolved.”
 However, the partners may specifically provide in
their agreement that in such cases the firm shall
not be dissolved and the remaining partner may
continue the firms business.

11.  The effects of insolvency are as under sec 34(2):
 The estate of the insolvent partner is not liable for the acts of
the firm which are done after the order of insolvency.
 It may be noted that a public notice to the effect that a partner
has become insolvent is also not necessary. The fact of a
insolvency is a notice by itself.
 The firm is also not liable for any act of the insolvent partner
done after the date of the order of the insolvency.

12. Deathof a partner
 On the death of the partners, a change occurs in the
constitution of the firm if the remaining partners
continue the firm.
 However, the partners may specifically provide in their
agreement , that in such cases firm shall not be dissolved,
and the remaining partners shall continue the firms
business.
 The estate of a deceased partner is not liable for any acts
of the firm which are done after his death.
 A public notice to the effect that a partner has died, is
not necessary.
 A death of a person is also a notice by itself.

13. Thank you
VISUALIZED BY :DEEPSHIKHA SHARMA
TOPIC TARGETED TO – MANAVI
GAURI DHAWADE
MEENA
PRIYA
RUTUJA