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How can a partner be removed from the firm?

1. Based on Partnership Deed Provisions

  • The partnership deed may contain a clause for the removal of a partner
  • The procedure and grounds for removal must be clearly mentioned
  • Removal must follow the method agreed upon in the deed
  • All partners must comply with the conditions stated in the agreement
  • Deed-based removal helps prevent legal disputes and confusion

2. Mutual Consent of All Partners

  • A partner can be removed through unanimous agreement
  • Written consent may be required for legal clarity
  • This method is peaceful and cooperative in nature
  • The outgoing partner’s rights and liabilities are discussed mutually
  • Proper documentation is needed to update official records

3. Removal Due to Misconduct or Breach

  • A partner may be removed for dishonest or harmful behavior
  • Violation of trust, fraud, or negligence can be grounds for removal
  • The decision must be supported by facts and firm-level consensus
  • Internal meetings and records may be required to validate the process
  • Legal advice may be taken to avoid wrongful removal claims

4. Removal Through Court Intervention

  • If the deed is silent or if partners disagree, legal action may be taken
  • A partner may approach the court to remove another partner
  • The court evaluates the behavior and its impact on the firm
  • Judicial orders ensure fairness in serious conflicts
  • This method is used when internal resolution fails

5. Post-Removal Formalities

  • The firm must notify the Registrar of Firms if registered
  • The partnership deed should be amended or updated
  • All business records, bank accounts, and authorizations must be revised
  • The removed partner must be paid dues as per the agreement
  • Public notice may be issued to inform clients and creditors

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