• 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 3 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 

Ajay Sethi
Advocate, Mumbai
45617 Answers
2680 Consultations

5.0 on 5.0

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.
Devajyoti Barman
Advocate, Kolkata
12856 Answers
166 Consultations

5.0 on 5.0

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 
Ajay Sethi
Advocate, Mumbai
45617 Answers
2680 Consultations

5.0 on 5.0

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. 
Ashish Davessar
Advocate, Jaipur
22977 Answers
634 Consultations

5.0 on 5.0

Dear Querist
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.
Nadeem Qureshi
Advocate, New Delhi
4856 Answers
221 Consultations

4.9 on 5.0

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. 
T Kalaiselvan
Advocate, Vellore
35807 Answers
390 Consultations

5.0 on 5.0

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