1.
INDIAN
PARTNERSHIP
ACT, 1932
Business Law PPT: Sandeep Sharma
PART 1

2.
* Some facts about Indian Partnership Act
* Essentials of Partnership
* Who may become partner in a firm?
* Who cannot become partner in a firm?
* Partnership structure
* “Partnership as agreement not as status”.
* D/b Partnership & LLP
In this PPT
Business Law PPT: Sandeep Sharma

3.
* There are various forms of business& Partnership is one of
them, like:-
Sole proprietorship
Joint stock
Co-operative societies
* This act came into force on Oct 1, 1932
* Except Section 69 this act came into force on Oct 1, 1933
(relating to registration of firms)
Some Facts about IPA, 1932
Business Law PPT: Sandeep Sharma

4.
* Act extends to the whole India except J&K.
* This act contains 74 sections.
* This act repeals chapter XI of the ICA,1872.
* Most of the provisions of this act is based on English
Partnership act.
* Number of max. partners is not specified
Some Facts about IPA, 1932
Business Law PPT: Sandeep Sharma

5.
* An association of two or more persons
* An agreement entered into, by all the concerned persons
* Agreement to carry on a business
* Sharing of profits
* Business must be carried out by all or any of them
Eg:- a manager’s remuneration, may be given a share in profits
of the business. He does not become partner.
Essentials: Partnership
Business Law PPT: Sandeep Sharma

6.
* Unlimited Liability: partner is liable for all acts of the firm
done while he is a partner.
* Dual role of Partners (Principal & Agent)
* Transfer of Share
* Investment: not necessary that all the partners may
contribute money.
Essentials: Partnership
Business Law PPT: Sandeep Sharma

7.
* Every person who is competent to enter into a contract.
* A married woman of any community.
* A minor can only be a partner in profits with the consent
of all the partners.
Who may become partners of a firm ?
Business Law PPT: Sandeep Sharma

8.
* A minor
* An alien enemy
* A person of Unsound mind
* A person disqualified by Law.
Who ‘cannot’ become partners of a firm ?
Business Law PPT: Sandeep Sharma

9.
* Partnership: it is the relation between persons who have agreed
to share the profits of a business carried on by all or any of them
acting for all.
* Partners: person who have entered into partnership with one
another are called individually as partners.
* Partnership firm: person who have entered into partnership with
one another are collectively a firm.
* Name of the firm: the name under which their business is carried
on is called the firm name.
Partnership structure
Business Law PPT: Sandeep Sharma

10.
The relation of partnership arises from contract & not from
status (by taking birth in a business family).
For Eg:-
Who are not partners in business.
* The member of HUF carrying on a family business
* A husband & wife of 2 different communities carrying a
business
Partnership as agreement not status
Business Law PPT: Sandeep Sharma

11.
*Governed by “Indian
Partnership Act”
*Act came into existence in
1932.
*Registration voluntary.
*Unlimited Liability.
*Name of firm as per choice.
Partnership
Business Law PPT: Sandeep Sharma
LLP
*Governed by “Limited Liability
Partnership Act”
*Act came into existence in
2008.
*Registration compulsory.
*Limited Liability.
*Name must have “LLP” as suffix

12.
* Partnership deed is the basic
documents.
* Foreign citizen can’t become
partner.
* The audit of account books is
not compulsory.
Partnership
Business Law PPT: Sandeep Sharma
LLP
* LLP agreement is the basic
document of the LLP.
* Foreign citizen are allowed to
become partner.
* LLP is required to have its
book of accounts audited by an
auditor.

13.
*Dissolution of partnership is
done by partners
agreement/insolvency.
*No separate legal entity.
*It does not have perpetual
succession. Death, insolvency,
insanity affect its existence.
(Continuation of a firm's existence,
unaffected by the death of any of its
owner(s))
Partnership
Business Law PPT: Sandeep Sharma
LLP
*Dissolution of LLP is voluntary.
*It has separate legal entity.
* It has perpetual succession,
any change in partners doesnot
affect its existence.

14.
* It doesnot have designated
partners.
* Every partner is an agent of
the other partners.
* Partners are joint owners of
the property.
* No firm is required to file its
annual return.
Partnership
Business Law PPT: Sandeep Sharma
LLP
* It required at least 2
designated partners.
* No partner is agent of another
partner.
* A LLP is the owner of the
property.
* Every LLP is required to file its
annual return to the registrar.

15.
* When ‘Indian Partnership Act’, introduced?
* What are the essentials of Partnership?
* Who may become partner in a firm?
* Who cannot become partner in a firm?
* Define ‘Partnership structure’?
* “Partnership as agreement not as status”, describe?
* How Partnership & LLP are different?
Rapid fire
Business Law PPT: Sandeep Sharma

16.
Business Law PPT: Sandeep Sharma
END OF PART 1