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)
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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?

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Ravikant

Ravikant (Expert)
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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)
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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.