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Appointment letter for a working partner

acqua (others) (61 Points)

10 March 2010

Hello to everybody.

I have a question: a working partner of a Partnership Firm should have an Appointment Letter to confirm his job position inside the firm?

If yes, who has to write and sign this Appointment Letter: one of the silent partners?

If no, which document should be written and act like a sort of Appointment Letter?

Thanks

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8 Replies

Rasesh (CS CWA MBA (Fin) B.Com LL.B (Spl)) (6501 Points)
Replied 11 March 2010

The Partnership deed would be sufficient for the purpose. If the deed is silient on the issue, then an POA signed by other partners in favour of the working partner should be prepared.

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acqua (others) (61 Points)
Replied 11 March 2010

Thanks Rasesh.

So it means that the POA will act like a sort of appointment letter?

And What about the salary? should the working partner have montly salary or in the POA the partners can write that salary should be, for example, given each 3 month? Do the partners have the the right to decide amount of salary, way to give salary, the time to give salary (for example each 3 months, etc etc)?

Many thanks,

Rasesh (CS CWA MBA (Fin) B.Com LL.B (Spl)) (6501 Points)
Replied 11 March 2010

POA will be more than just an appointment letter. You can specify the rights and powers of the working partner and the limits upto which he can act for the firm.

As regards, the salary it can be mutually decided by the partners by way of an agreement or in the partnership deed itself. The partners have all the rights to determine the amount and extent of salary. No need to specify it in the POA. The POA should be used for the purposes given in first para only.

acqua (others) (61 Points)
Replied 11 March 2010

Originally posted by : Rasesh
	POA will be more than just an appointment letter. You can specify the rights and powers of the working partner and the limits upto which he can act for the firm. As regards, the salary it can be mutually decided by the partners by way of an agreement or in the partnership deed itself. The partners have all the rights to determine the amount and extent of salary. No need to specify it in the POA. The POA should be used for the purposes given in first para only.

Thanks Rasesh.

Your informations have been very helpful for me.

acqua (others) (61 Points)
Replied 11 March 2010

Hello Rasesh,

I have the last question :

You wrote "the salary can be mutually decided by the partners by way of an agreement": this agreemenst should be written in a simple company letterhead signed by the partner? Or should be legalized by an Attorney?

Thanks again