The partner of the firm can be expelled from the firm with the consent...
A partnership firm can expel a partner provided:
- The power of expulsion exists in the contract between the partners
- Majority of the partners exercise the power
- The power is used in good faith
The partner of the firm can be expelled from the firm with the consent...
Expulsion of a Partner from a Firm
Introduction
In a partnership firm, the partners have a mutual agreement to carry on the business together. However, there may be situations where a partner's conduct or actions may warrant their expulsion from the firm. The process of expelling a partner is governed by the partnership agreement or the relevant laws in the jurisdiction.
Consent of Partners
The question states that the partner of the firm can be expelled with the consent of the majority of the partners. This means that in order to expel a partner, the majority of the partners must agree to the expulsion.
Explanation
Let's understand the options given in the question and why the correct answer is option 'B':
a) All the partners: If the consent of all the partners is required to expel a partner, it would mean that even a single dissenting partner can prevent the expulsion. This would give each partner veto power, making it difficult to expel a partner even in cases where it may be necessary for the smooth functioning of the firm. Therefore, this option is not practical.
b) Majority of the Partners: This is the correct answer. In most partnership agreements, the expulsion of a partner can be done with the consent of the majority of the partners. This means that if more than 50% of the partners agree to the expulsion, it can be carried out. This allows for a fair and democratic process where the decision is based on the collective judgment of the majority.
c) Any working partner of the firm: All partners, including non-working partners, should have a say in the expulsion of a partner. However, the consent of any single working partner is not sufficient to expel a partner. The decision should be made collectively by the partners as per the partnership agreement.
d) None of the above: This option is incorrect as the expulsion of a partner requires the consent of the majority of the partners, as explained above.
Conclusion
In conclusion, the partner of a firm can be expelled with the consent of the majority of the partners. This ensures that the decision is made collectively and takes into account the interests of the majority of the partners. It is important to refer to the partnership agreement and relevant laws to understand the specific requirements and procedures for expelling a partner in a particular jurisdiction.