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A partner can be expelled if
- a)such expulsion is in good faith
- b)the majority of the partners agree on such expulsion
- c)the expelled partner is given an opportunity to start a business competing with that of the firm
- d)compensation is paid
Correct answer is option 'A'. Can you explain this answer?
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A partner can be expelled ifa)such expulsion is in good faithb)the maj...
Expulsion of a Partner in a Partnership Firm
Expulsion of a partner from a partnership firm is a serious matter and should be done only in good faith and with proper consideration. The Indian Partnership Act, 1932 lays down the rules and guidelines for the expulsion of a partner from a firm.
Conditions for Expulsion
The expulsion of a partner can be done only under certain conditions, which are as follows:
- Good faith: The expulsion of a partner should be done only in good faith and with proper reason.
- Majority agreement: The majority of the partners in the firm should agree on the expulsion of a partner.
- Opportunity for competition: The expelled partner should be given an opportunity to start a business that competes with that of the firm.
- Compensation: The expelled partner should be paid compensation for his share in the firm.
The Correct Option
Out of the given options, the correct answer is option 'A', which states that the expulsion of a partner can only be done in good faith. This means that the expulsion should be based on proper reasons and should not be done out of malice or personal grudges.
Conclusion
Expulsion of a partner from a partnership firm should be done with proper consideration and under certain conditions. It should be done only in good faith and with the agreement of the majority of the partners in the firm. The expelled partner should be given an opportunity to start a competing business and should be compensated for his share in the firm.
Expulsion of a partner from a partnership firm is a serious matter and should be done only in good faith and with proper consideration. The Indian Partnership Act, 1932 lays down the rules and guidelines for the expulsion of a partner from a firm.
Conditions for Expulsion
The expulsion of a partner can be done only under certain conditions, which are as follows:
- Good faith: The expulsion of a partner should be done only in good faith and with proper reason.
- Majority agreement: The majority of the partners in the firm should agree on the expulsion of a partner.
- Opportunity for competition: The expelled partner should be given an opportunity to start a business that competes with that of the firm.
- Compensation: The expelled partner should be paid compensation for his share in the firm.
The Correct Option
Out of the given options, the correct answer is option 'A', which states that the expulsion of a partner can only be done in good faith. This means that the expulsion should be based on proper reasons and should not be done out of malice or personal grudges.
Conclusion
Expulsion of a partner from a partnership firm should be done with proper consideration and under certain conditions. It should be done only in good faith and with the agreement of the majority of the partners in the firm. The expelled partner should be given an opportunity to start a competing business and should be compensated for his share in the firm.
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A partner can be expelled ifa)such expulsion is in good faithb)the maj...
14. Section 33(1) of the Indian Partnership Act is unambiguously clear that partners cannot be expelled even by majority of partners. Partners can be removed or expelled only in exercise of good faith of powers conferred by contract between partners
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A partner can be expelled ifa)such expulsion is in good faithb)the majority of the partners agree on such expulsionc)the expelled partner is given an opportunity to start a business competing with that of the firmd)compensation is paidCorrect answer is option 'A'. Can you explain this answer?
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A partner can be expelled ifa)such expulsion is in good faithb)the majority of the partners agree on such expulsionc)the expelled partner is given an opportunity to start a business competing with that of the firmd)compensation is paidCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A partner can be expelled ifa)such expulsion is in good faithb)the majority of the partners agree on such expulsionc)the expelled partner is given an opportunity to start a business competing with that of the firmd)compensation is paidCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A partner can be expelled ifa)such expulsion is in good faithb)the majority of the partners agree on such expulsionc)the expelled partner is given an opportunity to start a business competing with that of the firmd)compensation is paidCorrect answer is option 'A'. Can you explain this answer?.
A partner can be expelled ifa)such expulsion is in good faithb)the majority of the partners agree on such expulsionc)the expelled partner is given an opportunity to start a business competing with that of the firmd)compensation is paidCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A partner can be expelled ifa)such expulsion is in good faithb)the majority of the partners agree on such expulsionc)the expelled partner is given an opportunity to start a business competing with that of the firmd)compensation is paidCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A partner can be expelled ifa)such expulsion is in good faithb)the majority of the partners agree on such expulsionc)the expelled partner is given an opportunity to start a business competing with that of the firmd)compensation is paidCorrect answer is option 'A'. Can you explain this answer?.
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