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A partner can retire on:
- a)Reaching the age of superannuation
- b)On the balance in the capital account reaching a certain amount
- c)In accordance with the Partnership Deed
- d)On the condition of his nominee becoming a partner
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
A partner can retire on:a)Reaching the age of superannuationb)On the b...
A partner can retire from a partnership firm in various ways, but the most appropriate and legally binding method is in accordance with the Partnership Deed. A Partnership Deed is a legal document that outlines the rights, responsibilities, and obligations of each partner in a partnership firm. The Deed provides a framework for the smooth functioning of the partnership and helps avoid potential disputes among partners.
In accordance with the Partnership Deed:
In accordance with the Partnership Deed:
- The Partnership Deed typically contains a clause or provision for the retirement of a partner, specifying the conditions and procedures for retirement.
- The retirement clause in the Deed might mention the age at which a partner can retire, or it may allow a partner to retire at any time by giving a specific notice to the other partners.
- The Deed may also outline the procedure for the valuation of the retiring partner's share in the partnership and the method of payment for the same.
- A partner's retirement might also be linked to certain events or conditions, such as the attainment of a specific business goal or the occurrence of a specified event.
- If the Partnership Deed does not contain any specific provision for the retirement of a partner, the partners can still agree to amend the Deed to include such a provision, subject to the mutual consent of all the partners.
It is important to note that other options mentioned in the question, such as reaching the age of superannuation, the balance in the capital account reaching a certain amount, or the condition of a nominee becoming a partner, can be considered valid reasons for a partner's retirement only if they are explicitly mentioned in the Partnership Deed.
In conclusion, while partners can retire from a partnership firm for various reasons, the most appropriate and legally binding method is in accordance with the provisions of the Partnership Deed. It is always advisable to have a well-drafted Partnership Deed in place to ensure a smooth and hassle-free retirement process for partners.
In conclusion, while partners can retire from a partnership firm for various reasons, the most appropriate and legally binding method is in accordance with the provisions of the Partnership Deed. It is always advisable to have a well-drafted Partnership Deed in place to ensure a smooth and hassle-free retirement process for partners.
Most Upvoted Answer
A partner can retire on:a)Reaching the age of superannuationb)On the b...
Retirement of a partner
A partner may retire-
with the consent of all the other partners,in accordance with an express agreement by the partners, or
where the partnership is at will, by giving notice in writing to all the other partners of his intention to retire.
A retiring partner may be discharged from any liability to any third party for acts of the firm done before his retirement by an agreement made by him with such third party and the partners of the reconstituted firm, and such agreement may be implied by a course of dealing between such third party and the reconstituted firm after he had knowledge of the retirement.
Notwithstanding the retirement of a partner from a firm, he and the partners continue to be liable as partners to third parties for any act done by any of them which would have been an act of the firm if done before the retirement, until public notice is given of the retirement:
PROVIDED that a retired partner is not liable to any third party who deals with the firm without knowing that he was a partner.
Notices under sub-section (3) may be given by the retired partner or by any partner of the reconstituted firm.
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A partner can retire on:a)Reaching the age of superannuationb)On the b...
A partner can retire from a partnership in accordance with the Partnership Deed. The Partnership Deed is a legal document that outlines the terms and conditions of the partnership, including the rights and responsibilities of the partners. It governs the operation of the partnership and provides guidelines for various aspects, including retirement.
Retirement Age:
One of the common provisions in a Partnership Deed is the retirement age. The partnership agreement may specify a certain age at which a partner can retire from the partnership. This retirement age is often referred to as the age of superannuation. Once a partner reaches this specified age, they have the option to retire from the partnership.
Retirement on Nominee Becoming a Partner:
In some cases, a partner may be allowed to retire if a specific condition is met, such as their nominee becoming a partner. This means that if the partner's chosen nominee meets the requirements set out in the Partnership Deed, the retiring partner can be relieved from their obligations and retire from the partnership.
Retirement on Capital Account Balance:
Another provision that may be included in the Partnership Deed is the option for a partner to retire when the balance in their capital account reaches a certain amount. The partnership agreement may specify a minimum capital account balance that a partner must maintain. Once the partner's capital account reaches this specified amount, they have the option to retire from the partnership.
Retirement in Accordance with the Partnership Deed:
The correct answer to the question is option 'C' - a partner can retire in accordance with the Partnership Deed. This means that the specific conditions and provisions outlined in the Partnership Deed determine when and how a partner can retire from the partnership. The Partnership Deed serves as a legal document that governs the partnership and provides guidelines for various aspects, including retirement.
Retirement Age:
One of the common provisions in a Partnership Deed is the retirement age. The partnership agreement may specify a certain age at which a partner can retire from the partnership. This retirement age is often referred to as the age of superannuation. Once a partner reaches this specified age, they have the option to retire from the partnership.
Retirement on Nominee Becoming a Partner:
In some cases, a partner may be allowed to retire if a specific condition is met, such as their nominee becoming a partner. This means that if the partner's chosen nominee meets the requirements set out in the Partnership Deed, the retiring partner can be relieved from their obligations and retire from the partnership.
Retirement on Capital Account Balance:
Another provision that may be included in the Partnership Deed is the option for a partner to retire when the balance in their capital account reaches a certain amount. The partnership agreement may specify a minimum capital account balance that a partner must maintain. Once the partner's capital account reaches this specified amount, they have the option to retire from the partnership.
Retirement in Accordance with the Partnership Deed:
The correct answer to the question is option 'C' - a partner can retire in accordance with the Partnership Deed. This means that the specific conditions and provisions outlined in the Partnership Deed determine when and how a partner can retire from the partnership. The Partnership Deed serves as a legal document that governs the partnership and provides guidelines for various aspects, including retirement.
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A partner can retire on:a)Reaching the age of superannuationb)On the balance in the capital account reaching a certain amountc)In accordance with the Partnership Deedd)On the condition of his nominee becoming a partnerCorrect answer is option 'C'. Can you explain this answer?
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