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TYPES OF PARTNERS:-
The
partnership is formed with its partners and their roles and responsibility may
also be changed. Based on their participation and roles in the firm, below are
the types of partners in Partnership Firm.
· · ACTUAL / ACTIVE / WORKING PARTNER:
A partner who attends
to the affairs of the firm is called as an active or actual partner. He is
actively involved in the management and other important functional aspects of
the partnership firm. He plays an active role in the conduct of business of the
firm. An active partner is liable to all the third parties for acts of the
firm. Actual partner also known as active or working partner. In case the
active partner chooses to retire, he must give a public notice of his
retirement. Subject to clause in partnership deed, the active partner can
withdraw remuneration from the firm.
·
DORMANT OR SLEEPING PARTNERS:
A partner who
does not attend to the affairs of the firm is called as a sleeping partner or a
dormant partner. He does not participate in the conduct of business of the
firm. His identity is not disclosed to the outsiders and persons dealing with
the firm. He is also liable to all the third parties for acts of the firm. He
is not required to give public notice at the time of his retirement.
· NOMINAL PARTNER:
A partner is
called as a nominal partner if, (a) he does not attend to the affairs of the
firm, (b) he supplies only nominal capital to the firm and (c) he shares only
nominal profits from the firm. The purpose of admitting a partner as a nominal
partner is to use the high status and credibility of such person for the
purpose of promoting the business of the firm. Thus, a nominal partner lends
his name to the firm. He has no real interest in the business of the firm. He is
also liable to all the third parties for acts of the firm.
· · PARTNER IN PROFITS ONLY:
A partner, who
is entitled to share the profits but is not liable to share the losses, is
called as a partner in profits only. A third party is empowered to recover the
whole of the amount due against the firm even from a “partner in profits only”.
·
SUB-PARTNER:
A ‘sub-partner’
is NOT a partner in the firm. When a partner agrees that some outsider shall be
entitled to the whole or some part of his share of profits and property, such
outsider is called as a sub-partner. He has no rights of a partner. He is not
liable for the acts of the firm. He has no right against the firm. His only
right is to claim the share of profits and property from the contracting
partner only.
· MINOR AS A PARTNER:
A minor cannot
become a partner in a firm since he cannot enter into a contract. However, a minor
can be admitted to the benefits of a partnership.
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