1. The Partnership Act, 1932

2. Meaning & Scope
 A relation between persons who have agreed to share the
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profits of a business carried on by all or any one of them
acting for all
No separate legal entity apart from its members
Number of members – Minimum 2 & Maximum 20
Partners working as agents
Partner’s liability

3. Kinds of Partners
 Active or working partner
 Sleeping or dormant partner
 Partner in profits only
 Nominal partner
 Secret partner

4. Rights of Partners
 Rights regarding management
 Rights regarding inspection
 Right to share profits
 Right to interest on capital contributed by him
 Right to interest on advances given to the firm
 Right to be indemnified
 Right to retire
 Right to act in emergency

5. Duties of Partners
 Duties regarding management
 Duties regarding accounts
 Duty to provide information
 Duty to indemnify the firm
 Duty to share loss
 Individual & joint liability

6. Registration of a Firm
 Optional
 Procedure
 Application to the Registrar of Firms
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Name & place(s) of business
Names, addresses & joining date of the partners
Duration, if any
Prescribed fee & signatures of the partners
 Punishment for furnishing false information – 3 months
imprisonment or fine or both

7. Dissolution of a Firm
 Dissolution of partnership & firm
 Modes of dissolution
 By agreement
 By insolvency of the partners
 By becoming the business unlawful
 By notice of dissolution
 By the court
 By the expiration of time period
 By completing the project for which it was formed