Robert, who is a sleeping partner in the firm wanted to inspect the bo...
Access to Books of Accounts by a Sleeping Partner
Background: Robert is a sleeping partner in a partnership firm and he wants to inspect the books of accounts due to certain allegations of financial impropriety by some of the partners. The other partners in the firm have denied access to the books of accounts.
Legal position: The action of the other partners in denying access to books of accounts to a sleeping partner is not correct since Robert has the right of access to books of accounts as a partner in the firm.
Explanation:
Partnership is a type of business organization where two or more persons come together to carry on a business with a view to making profits. In a partnership firm, the partners contribute capital, share profits and losses, and have a right to participate in the management of the firm. A sleeping partner is a partner who contributes capital but does not take part in the management of the firm.
The rights and duties of partners in a partnership firm are governed by the Partnership Act, 1932. According to the Act, every partner has the right to inspect and have access to the books of accounts of the firm. This right is not affected by the fact that the partner is a sleeping partner or does not take part in the management of the firm.
In the present case, Robert, as a partner in the firm, has the right to inspect and have access to the books of accounts. The fact that he is a sleeping partner does not affect this right. The other partners in the firm cannot deny him access to the books of accounts.
If any partner is denied access to the books of accounts, he can approach the court for relief. The court may order the other partners to allow access to the books of accounts or take any other appropriate action.
Conclusion: In conclusion, the action of the other partners in denying access to books of accounts to a sleeping partner is not correct since Robert has the right of access to books of accounts as a partner in the firm.
Robert, who is a sleeping partner in the firm wanted to inspect the bo...
A option because Sleeping partner means the partner who does not participate in management, Elsewhere he has all other rights i.e. he/she has the right to earn profits, he/she has a unlimited liability, he/she has invested his capital.
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.