Chapter 8

Section 4 of the Partnership Act, 1932 states: Partnership is the relation between persons who have agreed to share the profits of the business carried on by all or any one of them acting for all.

Agreement( oral and written)Firm and partnersNumbers of partner in a firm

Account is opened according to the instructions at the time of the account.

Implied power of the Co-partnerAccount opening form and

signaturesPartnership letter and partnership

deed Joint- and-several

Implied authority of a partner.The task of a cautious bank? Implied authority for legal mortgage

Liability of an incoming partnerOperations between the bank and

firmClayton’s Case against accountSigning of agreement on existing

tangible securities.

Provisions for retirementLiability of the retired partnerOperation of the firm accountClayton’s case against bankerSeverally liability of the retired

partner

Partnership and bankrupt partnerProcedure for winding up businessOperations of the accountClayton’s case against banker

Partnership and deceased partnerOperations of the account and state

of the bankClayton’s case against account

Winding up of businessCeasing account operationsCeasing personal account of partnersPartner pari pasu

An association of individuals for the purpose of profit, possessing a common capital contributed by the members constituting it, such capital being commonly divided into shares, of which each possesses one or more and which are transferable by the owner.

There are 3 types of JSC1.Unlimited Companies2.Limited Companies3.Companies limited by guarantees

These companies may be formed in any one of the following ways:

a.Chartered Companies b.Statuary Companiesc.Registered Companiesd.Limited companies

a company limited by guarantees

Resolution of BODMemorandum and articles of

associationCertificate of incorporationCertificate of commencement of

BusinessBalance sheet

Number of member in BOD Account opening criteria Authorization in the form of a resolution

comprising of Name of the banker Name of the persons authorized to

operate upon the account and their specific authorities

An undertaking that as and when the resolution will be revoked or the directors will change, the bank will be informed immediately.

1.General power of the company vested in directors.

2.Election, rotation and retirement of directors, including their relationship

3.Procedures for calling of the meetings and passing of resolutions

4.Assessment of profit and loss accounts

Issued by registrar of joint stock company

Evidence that the company is registered and fulfills all the requirements for formation by law

Issued by the register of the joint stock company

Criteria is:Subscription of shares( public and

directors)Submission of statuary declarationprospectus

Financial affairs of the companyAudit reports

Implied power to borrow money for the purpose of business( ultra vires)

Task of a banker1.Resolution2.Guarantees from directors

Resolution of BOD nominates the authorized person

Specimen signaturesDeath/retirement and dismissal of

the authorized personOpening an account without

Certificate of commencement

Winding up has 3 following ways1.Compulsory Winding up by the court2.Voluntary Winding up3.Winding up under supervision of

court