Types of Partners - Dissolution
Explain the various kinds of partners and precedure for dissolution of a partnership firm. Kinds of Partners Active Partner : Also known as a managing partner, this partner takes an active role in the day-to-day operations of the business. Sleeping Partner : This partner invests capital in the business but does not participate in its management. Nominal Partner : This partner lends their name to the business but does not invest capital or participate in management. Partner by Estoppel : This partner is not officially a partner but behaves in a way that leads others to believe they are. Partner in Profits Only : This partner shares in the profits of the business but not in its losses. Minor Partner : A minor can be admitted to the benefits of partnership with the consent of all partners. Procedure for Dissolution of a Partnership Firm Dissolution by Agreement (Section 40) : The firm may be dissolved with the consent of all partners or as per the terms of the partnership agreement. ...