Different types of partners in partnership
The kinds of partners are as follows:
The partner takes active part in the affairs of the firm and enjoys full voice in its management.
Sleeping or Dormant partner
The partner voluntarily surrenders the right to take part in the affairs of the firm and has no voice in its management. to the outsiders the partner is not known but the liability is unlimited.
The partner only lends his/her name and credit to the firm. on the strength of the reputation and goodwill of nominal partner, the firm may attract additional business and capital. the partner may or may not be given share in the profit but he never takes any active part in the management of the business however such partner is known to the outsiders as the partner of the firm and therefor he is held liable to the third parties.
According to section 30 indian partnership act 1932 a partner below 18 years of age can enter into partner ship but the liability is limited by his share in the partner ship capital within six months from attaining the age of majority such partner has to give public notice to the desire to continue in the partner ship firm. if he wants to continue after attaining majority such partner will be regarded as the full fledged partner with unlimited liability.
Holding out partner
A person may represent himself or may knowingly permit him to be represented as a partner of firm. such as person directly or indirectly holding him as a partner shall be liable as a partner for the obligation created on the misrepresentation. he will, ofcourse, not be entitled for any rights of the partner ship.
Partner by estoppel
If a person by oral or written or with an activity if he creates a belief to the outsiders that he is a partner in a certain firms and with that belief outsiders give loan to that firm or sell goods on credit, in such case, he cannot say that he is a partner. such a partner is called as a partner by estoppel. this type of partner doesn't pay capital and interfere in the affairs of the firm.
The partner doesn't disclose his name as a partner in a certain firm before public. he keeps his name as a secret. such a partner is called secret partner. though his name was secret he cannot escape from the debts of the firm.
Partner in profits
The partner enters in to the partnership firm with the understanding that he will be shared only in profits but also in losses. such a partner is called partner in profits. but such partner is fully responsible for the firm debts.
Out going partner
The partner will go out voluntarily with out dissolution of the firm. such a partner is called outgoings partner. such a partner is responsible for firm debts during his tenure as a partner. on the date of his outgoing if such a partner gives public notice by stating that he going out from the partner ship from there after he will not be responsible for any debts of the firm.
With the consent of other partners if a new partner joins in the running partner ship firm such a partner is called incoming partner. he will not be responsible for the debts of the firm prior to his joins period. in general, incoming partner pays amount to the existing partners in the form of good will as per the partnership agreement.
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