How can a working partner be removed in joint partnership

Sir, we are 4 partners in a hardware, One of our is acted as working partner who has no capital in initial invesment. Now there is situation in which we all are thinking of to seperate from partnership. Working partner is asking for his share in firm and also plot&building asset? What is solution to remove this partner.? Can he ask for plot &building asset?& need way to remove this person in alternate way?

Answers (2)

159 votes

Hi the answer to your query lie in your partnership deed (I am assuming that one exists).
If the partnership deed provides that if any of the partner decides to separate from partnership then he will get his share in assets, the deed will have to be followed.
Also, not bringing Capital cannot be a consideration as the person has acted as active/ managing partner (working partner as described by you). His efforts can be considered as his contribution towards partnership, depending upon terms of deed.

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269 votes

Dear Client,
The expulsion of partner depends upon the contents of partnership deed. Further the distribution os shares is also clearly specified therein.

Kindly ready the same to get a proper answer. Further you can book appointment of any of the lawyer of LawRato for proper consultation. As this is document based activity, nothing much can be said at this stage.

Expert Jurist LLP

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