(PDF) The theory of partnership

PARTNERSHIP

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1.Importance of having legal discussion in partnership firm ...............................................1
2.Case law related to formation of partnership disputes Wang v Rong [2015]....................2
3.Suggestions to the partners of Time to grow company for establishing their partnership. 3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Partnership is the form of the business in which the ownership is in the hand of more than
two individual who come together for sack of shared profit. There are different partnership
arrangements, in some kind of partnership all partners used to share the profit and liability
equally and the in other used to share the limited. The report lay emphasis on the Time to Work
consultancy where tree partners established a firm but there is no legal arrangement between
them so discussed the importance of legal arrangement and also highlights a case study of coffee
shop in south wales which discuss the disputes between the partners and also provide the
suggestion to run the business smoothly (Marquis & et.al, 2019)
1. Importance of having legal discussion in partnership firm
A Partnership Agreement is a dead among two or more person so that they operate as
well as manage a business in order to obtain the profit. It is basically a common business
structure in Australia, it can be constituted in other business also for example a company or a
trust, a sole trader (Cohen, 2017).
Yes, legal discussion is necessary for the firm because it can measure the profit and loss
sharing as per the investment ,defines the ownership interest ,capital contributions etc. given
below are some importance of legalization of firm (McCarthy, 2016).
According to section 6(3) of partnership act of 1963 that must be joint ownership for
sharing of profits is a prime factor through which partnership exist, also section 28 explains that
all the partners must bring equal losses of the firm. The most common partner’s right is to the
management of the company and able to right to access the company’s confidential financial
reports which came under the section 28(9).
Without a written agreement- it is not specified how an owner can sell own interest to
anyone else which includes a competitor (Robertson, 2016). As company could not address what
happen upon the death as well as disability of an owners and how will other as owners react on
this one, as they end up their business with their spouse or family members or the disabled
person with self. It will also allow partners to accept the most important decision in advance.
Such as how to handle disputes (Miro. & Del Pozo, 2016).
Limited partnership-According to the section 60(1)which indicates that limited partner
can be limited to show in the register such as limited partner could not take the part in any of the
management of the business of the limited partnership(Browne, 2018).
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