Question

Deepa, Guddi and Vani are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Deepa wants to transfer half of her share in favour of her son Deepak without the consent of Guddi and Vani. Can Deepa transfer her share? Give reason in support of your answer. State the feature of partnership highlighted in the above case.

Answer 1

No, Deepa cannot transfer her share to her son Deepak without the consent of Guddi and Vani.

Reason: Because of the joint agency and nontransferability of interest features of a partnership, a partner cannot give their share of the business to someone outside the partnership without the agreement of all the partners. Partners must trust and agree with one another for the partnership to work, and any change in ownership must be approved by all partners.

Feature of partnership highlighted: Restriction on the transfer of share.