I and my friend start business 2003 (partnership deed act equal partners i am the managing parner)in kerala.my friend entered his wife name in partnership deed . The last 12 years not issue with business and drawings and profit share equally settled and audited return filing yearly. Now they were diveroced.now his wife asked me deed copy and balance sheet the company starting from till date.their drwaings and share remitted his bank account i am keeping the counterfoil of the bank slip
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1) since wife of your friend is partner in business you have to furnish copy of partnership deed sought by wife
2) further audited balance sheet has to be furnished and funds remitted have to be provided to the friend wife
3) the issue would be when wife was partner why did you make payments of profits to your friend
1. If his wife is partner of the firm then she has right to inspect balance sheet and profit and loss accounts.
2. If she requests to see such details , you are bound to produce the same in default of which she may go to court.
3. This is the statutory right of a partner of firm.
partner is entitle to get financial details. in your case your partner's wife has right to get details from the date when she came in partnership firm only because she is not bound to bear financial related liabilities beyond such date. though partnership firm has no legal entity but it can't affected by any changes in capacity of its partners.
She earned estate in your partnership so she has right to call accounts of the firm. If you feel that her conduct is not proper and against the interest of the firm then you have right to expel her.
under Section 33 A partner may be expelled from a firm by majority of the partners, save in the exercise in good faith or powers conferred by contract between the partners.
section 9 provides general duties of partners i.e. partners are bound to carry on the business of the firm to greatest common advantage, to be just and faithful to each other, and to render true accounts and full information of all things affecting the firm to any partner, his heir or legal representative.
so if you feel that a partner has no common advantage then it may form basis of expulsion.
Borne in mind after expulsion she has right to get account of firm from the date of her joining.
Hi,
You are accountable to her for details if she is a partner on record.
what about your friend was he also a partner as per the deed.
You ask your friend to settle it with his wife.If they have ended their marriage on mutual terms, there should have been a clause regrading the partnership which in she was a partner officially.
You need not to be worried if the accounts, documents of profit and loss sharing in place.
Partners share 2 lakh each OD 16 lakh collateral security land his father's property Company has no assets rented building The last year company loss
1. Has your friend entered the name of his wife in his place as a patner or as another partner making the firm having 3 partners?
2. You should not have any objection for providing her the copies of the documents she has asked since as a partner she is entiyled to have copies of those documents.
You can provide her the documents/information she has asked for.