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
0 Comments