Can any partner stop the company or bank transactions
We are 3 partners running a factory. now one partner is want to get relived but asking more than his share . we are resisting him. we want to know what will happen:
1. can he stop the company operations ?
2. can he stop the bank transactions?
in this case what precautions we have to take?
Asked 2 years ago in Business Law from coimbatore, Tamil Nadu
1) the partnership deed must be mentioning share of the partners of firm
2) partner cannot claim more than his share of profits of the firm
3) partner cannot stop the operations of firm
4) the mode of operations of bank accounts must be specified in the firm instructions to the bank
5) if the partnership deed mentions that any 2 partners can operate bank account the disgruntled partner cannot stop bank operations
1. Yes, if he files a suit for dissolution of firm and injunction on its operations.
2.Yes. if the court grants injunction on bank operations.
File a caveat in the court having jurisdiction over the dispute.
the parther ship share is No.1 : 60% , No.2 : 20 % and No:3: 20 %..
Now No :1 want to get released because he is sick. he is claiming more than 60 %.
The partnership agreement clearly state dual signature .No.1 and no.2 or no.3 .
since No.1 is sick we had given a letter to bank that he cannot sign due to medical reasons so we need single signature till he is fit.
now fit my question to this senario. the other to partners need to run the unit . what has to be done .
Asked 2 years ago
1) partner cannot get more than 60%of his share .
2) if mode of operation of bank account is any 2 partners can sign cheques etc then no 2 and no 3 can sign
3) if signature of No 1 is must for operation of bank account then he can write to bank not to permit any further transactions in account
4) is there any arbitration clause in your partnership deed ? try to arrive at an amicable settlement failing which invoke clause for resolution of disputes
1. No partner can ask for a share greater than what has been reserved for him in the deed of partnership.
2. He cannot stop the functioning of the company. The bank transactions will also proceed untrammelled according the deed. After the release of No.1 his signature will no longer be required.
3. The remaining 2 partners are free to run the unit according to the partnership deed.
he can not get more then his share as per the partnership deed/agreement.
if other two partners want to run the unit then they can without any tension.
try to settle the matter amicably with No.1 and release him to safe side in future.
Advocate, New Delhi
The conditions agreed in the partnership deed will have an answer to this question. However, he resigning partner cannot claim more than his dues and he cannot stop the company's functions due to this. He may approach court of lw if he feels discriminated due to the demands not met, which can be challenged as per the provisions of law and also on the basis of the partnership deed and the agreed conditions therein.