17 March 2021
A Partnership firm of 3 partners. One of them died. The other two partners willing to carrying the same business. Please provide me a draft copy of "Reconstituted Partnership Deed after death of a Partner".
10 July 2024
Certainly! Here's a draft outline for a "Reconstituted Partnership Deed" after the death of a partner in a partnership firm with three partners:
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### Draft of Reconstituted Partnership Deed After Death of a Partner
**Partnership Deed**
This Deed of Partnership is made and executed on [Date], between:
1. **[Name of Surviving Partner 1]**, son/daughter of [Father's Name], residing at [Address], hereinafter referred to as "Partner A" (First Partner).
2. **[Name of Surviving Partner 2]**, son/daughter of [Father's Name], residing at [Address], hereinafter referred to as "Partner B" (Second Partner).
WHEREAS:
1. **Original Partnership:** - A Partnership was formed and registered under the Partnership Act, [Year of Formation], consisting originally of [Name of Deceased Partner], Partner A, and Partner B.
2. **Death of Partner:** - Unfortunately, [Name of Deceased Partner], one of the partners, has deceased on [Date of Death].
3. **Continuation of Business:** - Partner A and Partner B express their mutual desire to continue the business of the partnership and have agreed to reconstitute the Partnership Deed accordingly.
4. **Reconstitution:** - The Partners have agreed to reconstitute the partnership on the following terms and conditions:
**Terms and Conditions:**
1. **Name and Nature of Business:** - The business of the partnership shall continue to be conducted under the name and style of [Name of Partnership Firm], and the nature of the business shall remain [Describe Nature of Business].
2. **Duration:** - The partnership shall continue for an indefinite period until terminated by mutual consent or as provided by law.
3. **Capital Contribution:** - Partner A shall contribute [Specify Contribution] as capital, and Partner B shall contribute [Specify Contribution] as capital to the partnership.
4. **Profit and Loss Sharing:** - The profits and losses of the partnership shall be shared equally between Partner A and Partner B.
5. **Management:** - The management and administration of the partnership business shall be jointly managed by Partner A and Partner B. Decisions shall be made jointly, and any disagreements shall be resolved amicably.
6. **Banking and Accounts:** - The partnership shall operate a bank account in the name of the partnership firm, and all transactions shall be conducted through this account. Both partners shall have equal access and authority over the bank account.
7. **Admission of New Partners:** - Any future admission of new partners shall require the unanimous consent of Partner A and Partner B.
8. **Termination:** - The partnership may be terminated by mutual consent of Partner A and Partner B or in accordance with the provisions of the Partnership Act.
9. **Miscellaneous:** - Any matters not specifically provided for in this Deed shall be governed by the provisions of the Indian Partnership Act, [Year].
**IN WITNESS WHEREOF**, the parties hereto have executed this Deed of Partnership on the day, month, and year first above written.
**Signatures of Partners:**
1. [Signature of Partner A] Name: [Name of Partner A]
2. [Signature of Partner B] Name: [Name of Partner B]
**Witnesses:**
1. [Signature of Witness 1] Name: [Name of Witness 1]
2. [Signature of Witness 2] Name: [Name of Witness 2]
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### Notes: - **Legal Advice:** It's advisable to seek legal advice to ensure compliance with local partnership laws and regulations. - **Registration:** The reconstituted partnership deed should be executed on stamp paper of appropriate value and registered, if required, as per local laws. - **Bank Account:** Update the bank account details with the bank to reflect the changes in partnership composition. - **Government Filings:** Notify relevant authorities about the change in partnership composition, if required.
This draft outlines a basic framework. Depending on specific legal requirements and local laws, additional clauses or documents may be necessary.
CAclubindia
