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A partner may be expelled from the firm on the fulfilment of the condition that power of expulsion is exercised:
- a)As given by express contract
- b)In good faith
- c)By majority of Partners
- d)All of the above
Correct answer is option 'D'. Can you explain this answer?
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A partner may be expelled from the firm on the fulfilment of the condi...
Expulsion of a Partner from a Firm
Expulsion of a partner refers to the termination of partnership of a particular partner from a firm. The power of expulsion is a legal right conferred upon the remaining partners of the firm to terminate the partnership of a partner due to certain reasons.
Conditions for Expulsion
The power of expulsion can be exercised by the remaining partners of the firm on the fulfilment of certain conditions, as mentioned below:
Express Contract: The power of expulsion must be given by an express contract between the partners of the firm. The contract must define the circumstances under which a partner can be expelled from the firm.
Good Faith: The power of expulsion must be exercised in good faith by the remaining partners of the firm. The expulsion must not be arbitrary or malicious, and should be done for the benefit of the firm as a whole.
Majority of Partners: The power of expulsion can be exercised only by the majority of the partners of the firm. The decision to expel a partner must be taken by a majority vote of the partners.
Conclusion
Thus, it can be concluded that the power of expulsion can be exercised by the remaining partners of the firm only under certain conditions. The power must be given by an express contract, and must be exercised in good faith by a majority vote of the partners.
Expulsion of a partner refers to the termination of partnership of a particular partner from a firm. The power of expulsion is a legal right conferred upon the remaining partners of the firm to terminate the partnership of a partner due to certain reasons.
Conditions for Expulsion
The power of expulsion can be exercised by the remaining partners of the firm on the fulfilment of certain conditions, as mentioned below:
Express Contract: The power of expulsion must be given by an express contract between the partners of the firm. The contract must define the circumstances under which a partner can be expelled from the firm.
Good Faith: The power of expulsion must be exercised in good faith by the remaining partners of the firm. The expulsion must not be arbitrary or malicious, and should be done for the benefit of the firm as a whole.
Majority of Partners: The power of expulsion can be exercised only by the majority of the partners of the firm. The decision to expel a partner must be taken by a majority vote of the partners.
Conclusion
Thus, it can be concluded that the power of expulsion can be exercised by the remaining partners of the firm only under certain conditions. The power must be given by an express contract, and must be exercised in good faith by a majority vote of the partners.
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A partner may be expelled from the firm on the fulfilment of the condition that power of expulsion is exercised:a)As given by express contractb)In good faithc)By majority of Partnersd)All of the aboveCorrect answer is option 'D'. Can you explain this answer?
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