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PARTNERSHIP by Mind Map: PARTNERSHIP

1. Definition

1.1. Section 3(1) The relation which subsists between persons carrying on business in common with a view of profit.

2. Advantages

2.1. More partner, more capital Better decision making Access knowledge, skill, experience Easy to get start Sharing of profit or loss

3. Disadvantages

3.1. No independent legal status There is unlimited liability Limited to access capital There is no continuity of existence

4. Characteristics of Partnership

4.1. Division of Profits or Losses Co-Ownership of Contributed Assets Limited Life Unlimited Liability

5. Type of Partnerships

5.1. Active Partner Dormant Partner Quasi Partner Salaried Partner

6. Elements

6.1. More than two person Business in common Business for profit

7. Rights of a Partner

7.1. Right of the partner to take part in the day-to-day management of the firm. Right to be consulted and heard while taking any decision regarding the business. Right of access to books of accounts and call for the copy of the same. Right to share the profits equally or as agreed upon by the partners. Right to the use of partnership property exclusively for partnership business only not himself. Right to prevent admission of new partners/expulsion of existing partners. Right to continue unless and otherwise he himself cease to become partner. Right to retire with the consent of other partners and according to the terms-and conditions

8. Duties of a partners

8.1. To carry on the business to the greatest common advantage To be just and faithful to each other To render true accounts To work without remuneration To indemnify for loss caused by fraud or willful neglect To hold and use partnership property exclusively for the firm Not to carry on any competing business

9. Dissolution

9.1. Court's Intervention

9.2. Section 37

9.2.1. Permanently incapable

9.2.2. Lunatic

9.2.3. Guilty

9.2.4. Breach of partnership

9.2.5. Loss

9.2.6. Just and equitable

9.3. Without Court's Intervention

9.4. Section 34

9.4.1. Single adventure

9.4.2. Fixed term

9.4.3. Notice

9.5. Section 35

9.5.1. Bankrupt

9.5.2. Death

9.5.3. Charge

9.6. Section 36 Illegality