Whether this is a partnership firm or a company? Is it registered in India or USA?
If it is a partnership firm registered in India, your grandfather can transfer his 40% share.
Family partnership
My grandfather started a publication business in 1960s. His two sons, my father and my uncle, were partners in it. My Grandfather share - 40% My father share - 30% My uncle share - 30% My father died in 1996. After consent from my grandfather and my uncle, I got my father's share of partnership so now the partnership share is My Grandfather share - 40% My share - 30% My uncle share - 30% Question: Can my grandfather transfer his 40% share to my uncle without my consent? If yes, how can I prevent this from happening? Regards, Unknown
Asked 7 years ago in Business Law
14 Answers
You cannot control grand father's share it would his will.to transfer his share on his wish it is self acquired property and he cannot be bound for transferring same.
If grandfather please from you he can transfer it to you .
Hello
The business was started by your grandfather and his sons. They all had a share in it. You will definitely get your fathers share which have received. But you cannot get any share in the share held by your grandfather as he is the sole owner of the share and he can only decide what to do with it. Therefore he can transfer his share to anybody he likes.
Regards
Grandfather can transfer his share to uncle during his lifetime
2) your consent is not necessary
3) you can not prevent the transfer
Father has every right to give his property as he likes, he can transfer his share to anyone without consent.
Yes, you can prevent his share as per the partnership act, 1932 section 37.
Section 37 RIGHT OF OUTGOING PARTNER IN CERTAIN CASES TO SHARE SUBSEQUENT PROFITS.
Where any member of a firm has died or otherwise ceased to be a partner, and the
surviving or continuing partners carry on the business of the firm with the property of the firm without any final settlement of accounts as between them and the outgoing partner or his estate, then, in the absence of a contract to the contrary, the outgoing partner or his estate is entitled at the option of himself or his representatives to such share of the profits made since he ceased to be a partner as may be attributable to the use of his share of the property of the firm or to interest at the rate of six per cent. per annum on the amount of his share in the property of the firm :
Provided that where by contract between the partners an option is given to surviving or continuing partners to purchase the interest of a deceased or outgoing partner, and that option is duly exercised, the estate of the deceased partner, or the outgoing partner of his estate, as the case may be, is not entitled to any further or other share of profits, but if any partner assuming to act in exercise of the option does not in all material respects comply with the terms thereof, he is liable to account under the foregoing provisions of this section.
Dear,
Yes your grandfather transfer his 40% share to any one, your consent
is not necessary.
You can't control and deny this share.
its the grandfather's share
he can deal with it in any manner he deems fit
he does not need the consent of the other partners
however do check any restrictions in that regard which is described in partnership deed
if there is any such restriction then the grandfather has to comply with it
Dear Client,
A transfer by a partner of his interest in the firm, either absolute or by the creation by him of a charge on such interest, does not entitle the transferee, during the continuance of the firm, to interfere in the conduct of the business, or to require accounts, or to inspect the books of the firm, but entitles the transferee only to receive the share of profits of the transferring partner, and the transferee shall accept the account of profits agreed to by the partners.
SO, G F can transfer his share but no increase in authority to uncle but only profit.
Dear Sir,
It is called HUF property as such after the death of father you automatically get share of your father. Apart from this you are entitled a share in the share belonging to the grandfather after his death. Now you can file a formal suit saying that entire 70% share belongs to you and 30% share belongs to your uncle. Further say that your grand father retired from HUF and orally transferred his entire share in your favor since you are running the business actively whereas your uncle is a sleeping member of HUF and get a stay accordingly.
1. In the said partnership deed has there been any clause mentioned that for changing the partnership structurepattern, consent from the parners are to be availed?
2. If not then your grandfather can transfer 40% of his share in the said partnership farm to your Uncle without availing your consent.
3. Unless there is a term/condition mentioned in the said partnership deed that no one partner shall acquire more than 50% share of the Farm,you can not prevent the said transfer of shares by your grandfather.
Hi,
Your grandfather can transfer his share to anyone. However, the original agreement is vital and if it talks of consent from other partners, you may object.
Question: Can my grandfather transfer his 40% share to my uncle without my consent? If yes, how can I prevent this from happening?
There is no legal infirmity in your grandfather transferring his own share or property to anyone of his choice.
You do not have any authority or right question his acts.
You should be contended with your own share in the business even if it is a joint business.
Hello,
It is the self acquired business of the grand father and he is at liberty to transfer his share to any one.
In this case he is transferring it to your uncle, as per law he also has the liberty to give the same to any third person.
You do not have any right and hence you can not stop him.
Regards
