Partner's eligibility to get remuneration and profit?

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Querist : Anonymous

Querist : Anonymous (Querist)

02 September 2011 A partner had not invested a single rupee in a firm as his capital contribution,is he eligible for Remuneration and Share of Profit.

Ravikant

Ravikant (Expert)

02 September 2011 Remuneration and Share of Profit to partner do not depend on capital contribution,
the deed of partnership should allow such payment.

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Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2011 Thanks a lot for your valuable help.In the same case,Deed had specified that,there will not be any fixed capital a/c. but all the partners are required to contribute their capital and the same should be credited to their respective current cap. a/c.,there is no where mentioned in the deed that a partner is eligible for Remuneration and Share of Profit even without contributing a single rupee of his capital, though he is a working partner.In the deed,it is mentioned that all the partners are to be paid a remuneration in their respective profit sharing ratio.And in respect of share of profit,ratio is defined by the deed.What to do now?

Ravikant

Ravikant (Expert)

03 September 2011 you can pay partners Remuneration and Share of Profit in profit sharing ratio

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Querist : Anonymous

Querist : Anonymous (Querist)

04 September 2011 Thank you for guiding,but I dont want to pay them a single rupee.Can they demand the same by way of a legal action even if 12 partners out of 14 refuses for such payment and that 12 partners holds 80% of total share in aggregate.Please guide.

Ravikant

Ravikant (Expert)

05 September 2011 they cant demand the same by way of a legal action

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2011 Thanks tonnes for your valuable information.

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