06 March 2023
kindly give us draft for Death of Partner ( father ) and Admission of Partner ( son ) , is it necessary to get the consent from all the legal heirs of the Late Partner, OR CAN WE GET A INDEMNITY BOND FRON THE LEGAL HEIRS FOR CONSENT TO ADMIT ONE OF THEM AS PARTNER
10 July 2024
Certainly! Here's a draft outline for the scenario of the death of a partner (father) and admission of a new partner (son) into the partnership. It includes the process of obtaining consent from the legal heirs of the deceased partner.
### Draft for Death of Partner and Admission of Partner
**Partnership Deed Amendment:**
1. **Introduction:** - This deed of amendment is made on [Date], to amend the Partnership Deed dated [Original Partnership Deed Date], executed between [Name of Partners] (hereinafter referred to as "the Partners").
2. **Recitals:** - Whereas, [Name of Father], one of the partners (hereinafter referred to as "the Deceased Partner"), has passed away on [Date of Death]; - Whereas, the surviving partners desire to amend the Partnership Deed to reflect the death of the Deceased Partner and to admit [Name of Son], son of the Deceased Partner, as a partner in his place.
3. **Operative Clause:** - It is hereby agreed and declared as follows:
a. The Deceased Partner, [Name of Father], shall cease to be a partner in the partnership firm upon his death. b. [Name of Son], son of the Deceased Partner, shall be admitted as a partner in the partnership firm with effect from [Date of Admission]. c. The Partnership Deed dated [Original Partnership Deed Date] shall be amended accordingly, and all references to the Deceased Partner shall be removed and substituted with references to the new partner, [Name of Son].
4. **Consent of Legal Heirs:** - The surviving partners have obtained the consent of all legal heirs of the Deceased Partner for the admission of [Name of Son] as a partner in place of the Deceased Partner. - A copy of the consent letters from the legal heirs is annexed herewith as Appendix A.
5. **Indemnity Bond:** - In consideration of the admission of [Name of Son] as a partner in the partnership firm, the legal heirs of the Deceased Partner have executed an Indemnity Bond in favor of the surviving partners and the partnership firm, indemnifying them against any claims, demands, or disputes arising out of the admission of [Name of Son] as a partner. - A copy of the Indemnity Bond executed by the legal heirs is annexed herewith as Appendix B.
6. **Ratification:** - The surviving partners hereby ratify and confirm all other terms and conditions of the Partnership Deed dated [Original Partnership Deed Date] not specifically amended hereby.
7. **Execution:** - This Deed of Amendment is executed by the partners on the date first above written.
**In Witness Whereof,** the parties hereto have executed this Deed of Amendment on the day, month, and year first above written.
**Signatures:** 1. [Signature of Surviving Partner 1] Name: [Name of Surviving Partner 1]
2. [Signature of Surviving Partner 2] Name: [Name of Surviving Partner 2]
**Annexure:** - Appendix A: Consent letters from legal heirs of the Deceased Partner. - Appendix B: Indemnity Bond executed by legal heirs of the Deceased Partner.
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### Notes: - **Legal Advice:** It's advisable to seek legal advice to ensure compliance with local partnership laws and regulations. - **Consent of Legal Heirs:** Generally, consent from all legal heirs of the deceased partner is necessary for major decisions such as admitting a new partner. The Indemnity Bond can serve as additional assurance. - **Amendment Process:** After drafting, the partnership deed amendment should be executed by all existing partners and kept with the partnership records.
This draft outlines a basic framework. Depending on specific legal requirements and local laws, additional clauses or documents may be necessary.
CAclubindia
