MBA
Name: Roll No.: Subject: Teacher:
Awais Farooq 28 Introduction to Business Prof. Fida Hussein Bukhari Partnership
Topic:
Partnership Deed
This Partnership Deed is made at Lahore on November 10, 2011 between the following parties:
First Party:
Mr. Awais Farooq son of Mr. Farooq Umer, Muslim, age about 21 years, Residing at: House no. 53 A/3, Street No. 3, Jinnah Park, Kot Shahab Din, Shahdara, Lahore, hereinafter referred to as Party of the First Part.
Second Party:
Mr. Abdul Rehman son of Mr. Parvez Iqbal, Muslim, age about 23 years, Residing at: House no. 9, Street No. 3, Kot Shahab Din, Shahdara, Lahore, hereinafter referred to as Party of the Second part.
Third Party:
Mr. Mustazhar Ali son of Mr. Ghazanfar Ali, Muslim, age about 22 years, Residing at: House no. 62, Street no. 3, Kot Shahab Din, Shahdara, Lahore, hereinafter referred to as Party of the Third Part.
Fourth Party:
Mrs. Anisa Rafiq daughter of Mr. Rafiq Shahzad, Musilm, age about 21 years, Residing at: House No. 6, Khayaban-eShamsheer road, DHA, Karachi, hereinafter referred to as Party of the Fourth Part.
WHEREAS the Parties of the First, Second, Third and Fourth Part have agreed to commence business in partnership the business of Wireless Internet Services, under the name and style of Illusion Hotspots
The following terms and conditions are mutually agreed between the parties thereto:
1. Name and Business:
The name of partnership firm shall be Illusion Hotspots to provide Wireless Internet Services.
2. Commencement:
The partnership shall commence after one month from the date of formation of this document.
3. Place of Business:
The principal place of business shall be Johar Town, Lahore or any other place or places as may be mutually agreed upon by the partners.
4. Term:
The partnership shall continue as partnership AT WILL.
5. Capital:
The total capital of the firm shall be Rs. 12,00,000 (Twelve Lakh Rupees Only). Capital shall be contributed by the partners equally. Neither partner shall withdraw its capital from the firm unless mutually agreed upon by the partners.
6. Additional Capital:
If additional capital is required for effective functioning of the business it shall be contributed as mutually agreed upon by the partners.
7. Salaries:
Party of the first part shall be entitled to salary IF AND WHEN the net profit of the firm is more than equal to 1,00,000 Rs. for providing services to the partnership. The amount of salary shall be 10% of the amount of net profit. If any other partner provides services to business he may receive remuneration as mutually agreed upon by all partners.
8. Profit and Loss Sharing:
The net profit of the firm after deducting all expenses incurred for the purpose of business and salaries of partners shall be divided among the partners equally or in the ratio of their capital if any additional capital is invested by the partners.
The losses suffered by the business shall also be divided among the partners in the same way as described above. A separate income account shall be maintained for each partner. Partnership profits and losses shall be credited to the separate income account of each partner. If a partner has no balance in his income account, losses shall be charged to his capital account.
9. Additional Funds:
If the firm needs additional funds for business use any partner may lend such funds or borrow from any bank or financial institution with the mutual consent of other partners on behalf of the firm.
10. Bank Account:
On the date of commencement of business a bank account shall be opened in the name of firm with any scheduled bank as mutually agreed upon by the partners. All partners shall have access to the account. Each partner shall be allowed to draw from his income account without the consent of other partners. All payments and amounts of money received by firm shall be deposited into the same account
11. Books of Accounts:
The books of accounts of the firm shall be maintained at the principal office of company at Johar Town, Lahore, in True and Proper form. Books may be maintained at any other place of business with the consent of all partners. The partners shall have free access to the books at any time.
12. Incoming Partner:
No person shall be admitted to the partnership without the mutual consent of all partners.
13. Outgoing Partner:
In case a person wants to retire from partnership he shall give a written notice of 3 months to all other partners. His share shall be assessed and paid out of available assets. Any of other partners may buy his share. The retirement of the outgoing partner shall not dissolve the partnership; the remaining partners may admit a new partner with their mutual consent or carry on business on their own as suited best by them. The outgoing partner shall not engage in a similar business as of the partnership.
14. Death of a Partner:
The death of a partner shall not result in dissolution of the partnership; the heirs of the deceased shall continue to receive profits unless they demand their share according to the share of deceased if. Losses of business will not be charged to the heirs of the deceased unless they are admitted as partners.
15. Incapacity of Partners:
In case a partner becomes incapable of carrying on business he shall continue to receive profits of the business according to his share unless he wishes to retire. However he shall not be liable to contribute towards the losses of business.
16. Management, Duties and Restrictions
The partners shall have equal rights in the management of business; Party of the First Part shall operate business on behalf of other
partners taking active part in management and technical affairs with the mutual consent of all partners. If another partner provides his services to business he shall receive remuneration as mutually agreed upon by all partners. No partner shall take substantial business decision on his own unless it is a matter of regular course of business i.e. taking order, accepting payment etc Any employees may be hired if deemed necessary by Party of the First Part with mutual consent of all partners. Any partner shall not disclose any secrets of business which might result in damage to business operation or reputation.
17. Transfer of Share:
A partner shall be able to transfer his share in business to another person with the mutual consent of all partners.
18. Dissolution:
In case of dissolution of a firm an accountant shall be appointed with the mutual consent of all partners who shall asses the net worth of business. Any losses and outstanding debts of the business shall be settled out of the profits of that year, then the income accounts of partners in proportion to their profit sharing ratio, then out of capital account, and if any balance remains the partners shall contribute individually according to the ratio the shared profits. Oustanding debts shall be paid off to third parties first and then to the partners,
If any amount is left it shall be divided among the partners in the ratio the shared profits.
19. Dispute:
In case a dispute arises among the partners which is out of the scope of this deed the partners may seek guidance from the Partnership Act 1932 or elect a third person to make the final decision with their mutual consent, which ever suits them best.
Signatures of Partners and Witnesses
First Party:
Witness:
Second Party:
Witness:
Third Party:
Witness:
Fourth Party:
Witness:
