+1)1 /+

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INCCMING Ak1NLkS
1 no person shall be lnLroduced as a parLner
lnLo a flrm wlLhouL Lhe consenL of all Lhe
exlsLlng parLners (SecLlon 30)
2 A person who ls lnLroduced as a parLner lnLo a
flrm does noL Lhereby become llable for any
acL of Lhe flrm done before he became a
parLner (SecLlon 30)
kL1IkLMLN1 CI Ak1NLkS
W L ls also called Lhe ouL golng parLners
W When a parLner wlLhdraws from a flrm and Lhe
remalnlng parLners can conLlnue Lo carry on Lhe
buslness of Lhe flrm and Lhe parLnershlp does noL
sLand dlssolved Lhen Lhe wlLhdrawlng parLner ls
sald Lo have reLlred from Lhe flrm
1
The Partnership Act, 1932 (1932 Act`) in s.32 subsection (1) sets
out three methods by which a partner may retire as Iollows:
W Consent of all partners
ith the express or implied consent oI all other partners, a
partner may retire at any time Irom a Iirm.
W press agreement between partners
A partner may retire Irom a Iirm in accordance with the
method prescribed by the articles oI partnership whether or
not the other partners agree to this at the time oI retirement.
onLlnue
ritten Notice
W n a partnership at will a partner may retire by
giving written notice to all the other partners oI
his intention to retire.
(section.32 subsection (1) Act, 1932)
kL1IkLMLN1 CI Ak1NLkS
W pulsion of a partner:
A partner may not be expelled Irom a Iirm by any majority oI the partners, saves in
the exercise in good Iaith oI powers conIerred (grant) by contract between the
partners. (Sub section (2), (3) and (4)) applied to an expelled partner as iI he were a
retired partner.
W nsolvency of a partner:
1- here a partner in a Iirm is adjudicated (pass judgment) an insolvent he ceases to
be a partner on the date on which the order oI adjudication is made, whether or not
the Iirm is thereby dissolved.
2- here under a contract between the partners the Iirm is not dissolved by the
adjudication oI a partner as an insolvent the estate oI a partner so adjudicated is not
liable Ior any act oI the Iirm and the Iirm is not liable Ior any act oI the insolvent,
done aIter the date on which the order oI adjudication is made.
IA8II1 CI kL1IkING Ak1NLkS
W L sLlpulaLes LhaL a reLlrlng parLner along wlLh
oLher parLners remalns llable Lo Lhlrd parLles for
acLs done before reLlremenL by any of Lhem on
behalf of Lhe flrm Such llablllLy of Lhe reLlrlng
parLner conLlnues unLll publlcaLlon of publlc
noLlce of reLlremenL
W rovlded LhaL a reLlred parLner ls noL llable Lo any
Lhlrd parLy who deals wlLh Lhe flrm wlLhouL
knowlng LhaL he was a parLner
onLlnue
W Also a reLlrlng parLner can be absolved of
llablllLy Lowards any Lhlrd parLy for acLs of Lhe
flrm done before hls reLlremenL by an
agreemenL beLween Lhe reLlrlng parLner
parLners of Lhe reconsLlLuLed flrm and
concerned Lhlrd parLy Such agreemenL can be
express or lmplled
onLlnue
W A reLlrlng parLner's llablllLy conLlnues unLll
publlc noLlce of reLlremenL ls publlshed
W AgreemenL absolvlng hlm of llablllLy ls
reached
(5ectloo J2 sobsectloos (2) ooJ (J) of tbe 19J2
coottoct Act)
onLlnue
W iability of estate of deceased partner:
here under a contract between the partners
the Iirm is not dissolved by the death oI a
partner, the estate oI a deceased partner is not
liable Ior any act oI the Iirm done aIter his
death.
kLS1kICICN IMCSLD CN CU1GCING
Ak1NLkS
1 An ouLgolng parLner may carry on a buslness
compeLlng wlLh LhaL of Lhe flrm and he may
adverLlse such buslness buL sub[ecL Lo conLracL
Lo Lhe conLrary he may noL
W Dse Lhe flrm name
W 8epresenL hlmself as carrylng on Lhe buslness of
Lhe flrm or
W SollclL Lhe cusLom of persons who were deallng
wlLh Lhe flrm before he ceased Lo be a parLner
onLlnue
2 AgreemenLs ln resLralnL of Lrade
A parLner may make an agreemenL wlLh hls
parLners LhaL on ceaslng Lo be a parLner he wlll
noL carry on any buslness slmllar Lo LhaL of Lhe
flrm wlLhln a speclfled perlod or wlLhln speclfled
local llmlLs and noLwlLhsLandlng anyLhlng
conLalned ln (sectloo 27) of Lhe onLracL AcL
1872 such agreemenL shall be valld lf Lhe
resLrlcLlons lmposed are reasonable
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