in Corporate Law
Asked October 11, 2021

Resignation of Partner

  • 1 Answer

I'm involved in a partnership firm as a sleeping partner. Now I want to quit the partnership firm but I'm unsure of how to proceed and what legal formalities will be involved. Can you guide me on this?

Answer 1

Resigning from a partnership is quite simple. Firstly, ensure that you completely study the partnership agreement for clauses concerning the quitting of a partner or breaking of the partnership. Check if all such clauses have been adhered to by yourself. The agreement is also bound to have mentions to withdrawal of capital, payment of liabilities and all such relevant information in case a partner quits. Then you will have to draft a notice of withdrawal where you mention your wish to withdraw and when you would like to. You must also make sure that the notice period is served before quitting or else you might be required to pay compensation.

Agree Comment 0 Agrees about 2 months ago

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