Partnership Act 1932
Introduction |
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artnership Business a form of business organization created through voluntary agreements of minimum two and maximum 20 persons (the maximum is 10 in the case of banking business), with the intention of making and sharing profits among themselves. A partnership can arise only as a result of an agreement or contract, expressed or implied, between the partners. In Bangladesh, a partnership firm is to be formed under the provisions of the Partnership Act 1932. A person of unsound mind is not eligible to become a partner. A minor is also not eligible to become of partner in a firm. However, if all the partners agree, a minor may only be admitted to the benefits of an already existing partnership. By definition, a partnership is illegal if it consists of more than 20 persons in case of a general business and more than 10 persons in case of business in banking. A non-profit making association is not a partnership in law of Bangladesh. In general, institutions or associations cannot be a member of a partnership.
The Partnership Act 1932 does not require a partnership deed or agreement to be registered. The registration of such firm is optional. But if registered, a partnership firm can enjoy some legal rights and facilities. A partnership deed includes- * the name of the firm, * nature of business, * the capital and property of the firm, * the capital of individual partners, * term of partnership, * provision for salaries, and * rate of interest (if any) on partners' capital, * advances and drawings, * rights and duties of individual partners, * provision for accounts and audit, * division of profits and losses (capital and revenue), * powers of admission and removal of a partner, * termination of agreement by insolvency, death, etc., * Valuation of goodwill and share of assets on sale or death.
The partnership business plays a dominant role in the trade sector in Bangladesh. As on
P
artnership Business a form of business organization created through voluntary agreements of minimum two and maximum 20 persons (the maximum is 10 in the case of banking business), with the intention of making and sharing profits among themselves. A partnership can arise only as a result of an agreement or contract, expressed or implied, between the partners. In Bangladesh, a partnership firm is to be formed under the provisions of the Partnership Act 1932. A person of unsound mind is not eligible to become a partner. A minor is also not eligible to become of partner in a firm. However, if all the partners agree, a minor may only be admitted to the benefits of an already existing partnership. By definition, a partnership is illegal if it consists of more than 20 persons in case of a general business and more than 10 persons in case of business in banking. A non-profit making association is not a partnership in law of Bangladesh. In general, institutions or associations cannot be a member of a partnership.
The Partnership Act 1932 does not require a partnership deed or agreement to be registered. The registration of such firm is optional. But if registered, a partnership firm can enjoy some legal rights and facilities. A partnership deed includes- * the name of the firm, * nature of business, * the capital and property of the firm, * the capital of individual partners, * term of partnership, * provision for salaries, and * rate of interest (if any) on partners' capital, * advances and drawings, * rights and duties of individual partners, * provision for accounts and audit, * division of profits and losses (capital and revenue), * powers of admission and removal of a partner, * termination of agreement by insolvency, death, etc., * Valuation of goodwill and share of assets on sale or death.
The partnership business plays a dominant role in the trade sector in Bangladesh. As on