Partnership - Law (business organziation) tutorial question 4.16
Identify the area or areas of law
The area of law concerns this case, which in connection with the relations of partners to one another, especially expulsion of partner and distribution of assets on dissolution of partnership.
Explain the principles of law
EXPULSION
Regarding expulsion, the Partnership Act says that:
"No majority of the partners can expel any partner unless a power to do so has been conferred by express agreement between the partners."
The power to expel any partner by a majority of the …showed first 85 words of 947 total…
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…showed last 85 words of 947 total…to the full extent of their personal resources.
Conclusion
It appears that if there is a clause inserted in the partnership agreement permitting such an expulsion; and majority of the partners have a decision to expel, Mike might be expelled, if not, they cannot. Moreover, Mike was liable for the debts and obligations to the full extent of his personal resources, after he contribute the capital for debts, the residue distributed according to the proportion that profits were paid to the Mike by the partnership.
