PARTNERS

HIP
FREE POWERPOINT
TEMPLATE
QUICKERSWEB & POWERPOINT SCHOOL
 Partnership Law
Definition and nature of
Formation
partnership

Partnership
Dissolution of partnership Liability of Partners
Act
1961

Registration of partnership
Liability of Partners
 DEFINITIO
N
A partnership is a business entity owned by two (2) persons but not exceed to twenty
(20) persons at one time.

Only a local Malaysian or Permanent Resident (PR) is allowed to register a

Partnership to run their business

Section 3 (1) of PA defines a partnership as:“Partnership is the

relation which subsists between persons carrying on abusiness in
common with a view of profit”
ADVANTAGES
 Easy wind-up
process
Sharing of
responsibility Lowest annual cost

Minimum entry
requirements

No corporate tax
payments
DISADVANTAGES
Conflict Not a
separate
legal entity

liable for actions by

other partners
Essential Elements of partnership
 Agreement
Must carry between two or
on some more person
business


Share profits of the

business Agreement
Contents in partnership agreement
01 Contribution
to capital
05 Remuneration
Here add some brief about
the heading point

02 Distribution of profits
06 Change in the nature
of the partnership
business

03 Apportionment of
losses 07 Partnership property

04 Management of the
business
08 Introduction of new
partner
 Types of partners

Active Sleeping Salaried Holding

out
 F
I R
M

The firm – members of a partnership are called collectively a ‘firm’ BUT has no
separate legal entity although the firm’s name may be used in court’s
proceedings by the partners or persons suing them.
Liability of Partners
Ordinary Torts Contractual liability Misappropriation Criminal liability

every partner in a
firm is liable jointly if a partner acting in
the tortious act
(for all contractual his
must be and other they are not
committed by a individual capacity,
debts and liabilities improperly makes use jointly liable
partner either in including tax and of trust
the ordinary judgment property in the Saturn
course of the debts) with the other business of the firm,
business partners for all debts his other
and partners are not liable
obligations of the to the beneficiaries
firm incurred
Rights of a partner
Right to dissolve the Right to have
partnership access to books

Right to share profits

equally
Right to prevent the Right to retire
introduction of a new
partner
Right to receive interest
on capital out of profits
Dissolution of partnership
 ss34-37PA

S.35(1) PA s.36 PA

By court
By agreement order By operation
s.37 PA of law

Death or By supervening
bankruptcy illegality

mutual • Insanity
• permanent incapacity 34(1)(a) PA
• willful and persistent breach
• carried on at a loss;
THANKS FOR LISTENIN
G