Kinds of PartnersTypes of Partners
The partners of a firm are broadly divided into three main categories.(1) General Partners.(2) Special Partners.(3) Other Partners.
(1) General Partners
Basically all the partners of a firm are general partners. Generalpartners we those whose liability is unlimited in the f General partnersare of two types (a) Active partner, and (b) Sleeping partner.
a) Active Partner
A partner who takes active part in the day to day management of thebusiness is cared an active partner. An active partner (also calledworking partner) may work in different capacities such as manager,organizer, adviser, controller of all the affairs of the firm. The activepartner is rewarded as per agreement between the partners.
(b) Sleeping Partner
A sleeping partner is one who contributes capital, shares profits andlosses of the firm but takes no part in the day to day management of the affairs of the firm. A person, who has money to invest but cannotspare time for the business, may become sleeping partner. A sleepingpartner is liable for the liabilities of the business like other partners.
(2) Special Partners
Special partners are partners whose liability is limited to the extent of their capital contributed in the firm. They are only found in limitedpartnership. The special partners cannot take part in the managementof the business of the firm. In Pakistan limited partnership is notrecognized.
(3) Other Partners
The other types of partners sometimes found in a firm are as follows.
(a) Secret Partner
A partner who takes active part in the affairs of a business but is notknown to the public as a partner is called Secret partner”. He, likeother partners, is liable to the creditors of the firm to an unlimitedextent He shares profits according to the agreement signed.
(b) Nominal Partner
nominal partner lends his name for the goodwill and credit worthinessto the firm. He neither contributes capital nor takes active part in themanagement of business. Such partners are called nominal partners.Nominal partners are liable for the debts of the firm.
(c) Minor Partner
Partnership is a contract and a contract with minor is void. UnderSection 30 of Partnership Act, a minor is not able to enter into acontract and so he cannot become a partner of a firm. He can,