• Partnership firm partners to modify the stake

Two Partners of business firm has 50% stake. One partner wants a part of asset sold and take the proceeds for his personal use and reduce his stake say from 50 to 40%. The second partner agrees to this proposal. If the simply reflect the Stake change in writing a new Partnership deed and send a copy to 'registrar of firms' is enough or is this new deed needs to be registered at Sub registrar office paying charges for the 10% relinquishment ? despite the same two partners continuing as partners.   ( The asset sale will  be any way registered to the third party with necessary charges and the sale proceeds will be to the company account and Capital gains would be paid ) Please explain the legally acceptable procedure.
Asked 2 years ago in Business Law from Vijayawada, Andhra Pradesh
Dear Querist
submitted a supplementary deed before Registrar of Firm is sufficient in which all the detail of changes should be mentioned.
Nadeem Qureshi
Advocate, New Delhi
3812 Answers
151 Consultations
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1) since one partner wants to reduce his stake in partnership firm from 50% to 40%it can be done by filing of supplementary deed  before the Registrar of Firms . 

2) suplementary deed should be duly stamped and registered
Ajay Sethi
Advocate, Mumbai
27331 Answers
1486 Consultations
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You can file a supplementary deed from the date he wishes to do before the registar.it must be registered and stamped accordingly
Jeshma Mohandas KP
Advocate, Kozhikode
567 Answers
1 Consultations
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Hello,
Since it is an existing partner who wants makes the changes by reducing the stake from 50% to 40% by sale of 10%  and as the other partner is agreeable to the change all that is required is to submit a Supplementary  Deed before the before Registrar of Firms with the changes you intend to incorporate and have it duly registered with requisite stamp.
S J Mathew
Advocate, Mumbai
1987 Answers
79 Consultations
5.0 on 5.0
Since both the partners are into a positive agreement with respect to executing the proposal of the first partner, a supplementary deed prepared and filed to the registrar of firms will suffice. The supplementary deed has to be registered and the requisite stamp duty paid thereon.
Ashish Davessar
Advocate, Jaipur
19587 Answers
507 Consultations
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1. There are two ways for going about this,

2. If you do not apprehend any future litigation from the other partner, just one MOU or unregistered supplemantary deed will suffice which will be economical for yoy,

3. If you want to be strictly formal, get the said supplementary deed registered by paying the necessary stamp duty and registration fee.
Krishna Kishore Ganguly
Advocate, Kolkata
13581 Answers
291 Consultations
5.0 on 5.0

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