MEMORANDUM OF PARTNERSHIP OF HINDU JOINT FAMILY BUSINESS
This Memorandum made at ……… this day of ………..between
and (4) Miss …………. all of……… as follows.
(1) The Parties hereto are members of a joint and undivided Hindu family. Mr ................. being the father of Mr ................... and Mr ...................... his sons and Miss '........................' his daughter
(2) Miss "......................." being unmarried has acquired the rights of a coparcener by virtue of the Hindu Succession Amendments Act passed by the State of
(3) The said family has been carrying on a business as ancestral business consisting of………………
(4) The Parties decided to carry on the said business in partnership as from the day of……………..
(5) The Parties, as such members of the joint Hindu family have equal shares in the said business with its assets as on partition.
(6) As from the said date the parties have opened four separate accounts in their respective names in the account book of the said business and crediting the amounts coming to the share of each of the parties in the profits of the Firm.
(7) It is agreed to record the understanding between the Parties hereto regarding the said business as follows.
NOW IT is recorded and agreed as follows
(1) The said business of the joint Hindu Family of the parties hereto will be carried in the same name. i.e. in the name of M/s at the same premises at……….
(2) The business has been carried in partnership between the Parties hereto and shall be carried in partnership and not a joint family business as from the said date that is as from the ……… day of……….
(3) The Parties hereto are to have equal shares in the net profits and losses of the firm
(4) The assets of the business with goodwill will belong to the Parties in equal shares.
(5) All the present and future debts and liabilities of the business will be the liability of the Parties hereto in equal shares
(6) The bank accounts of the business will continue in the same way and will be operated by the Party of the First Part as hitherto.
(7) Any party hereto shall be entitled to retire from the partnership by giving one month's notice in writing to the others and on such retirement he or she will be paid her share in the assets of the firm exclusive the good will, it is however agreed that if and when the Party of the Fourth Part gets married, she will be deemed to have retired from the partnership and her share in the assets of business less her share in the debts and liabilities will be paid to her or the payment will be secured in such manner as may be agreed upon.
(8) No Party hereto shall be entitled to dissolve the partnership unless all or a majority of the Parties agreed to do so.
(9) The accounting year of the business will be the same as hitherto fore that is from……… to……….
(10) At the end of each accounting year an account of the business carried on in that year will be made and a statement of accounts, namely. a Balance Sheet and Profit and Loss Account will be prepared and signed by the partners. If necessary or required by law the accounts will be got audited by a Chartered Accountant.
(11) The books of account and all other record of the firm will be always kept at the office of the firm and will be open for inspection by any of the partners hereto at any time.
(12) All the working staff such as clerks, peons, accountants, cashiers, salesmen and others will be appointed by the joint consent of the parties, and their wages and salaries and other emoluments will be fixed by mutual consent,
(13) Each of the partners shall
(a) participate and attend to the business of the firm to the greatest common advantage of the Firm.
(b) be just and faithful to the other.
(c) render true accounts and full information of all moneys and dealings affecting the Firm to the other.
(d) indemnify the Firm for or against any loss caused to it by his wilful negligence or fraud in the conduct of the business.
(e) not carry on any business similar to the business of the Firm or any other business anywhere without the consent of the other partners.
(f) and to the business of the Firm diligently and actively.
(g) not withdraw any amount for his own benefit or use as remuneration or otherwise without the consent of the others-
(h) be entitled to be indemnified by the Firm in respect of payment made and liabilities incurred by him,
(i) in the usual and proper course of business of the Firm and (ii) in doing any act for protecting the Firm from loss in emergency.
(14) All the tangible and intangible assets of the Firm including the goodwill, stock-in-trade, benefit of business licences and permits, benefits of contracts entered etc. will belong to the partners in equal shares and the property of the Firm shall be used by the parties exclusively for the business of the Firm.
(15) Every party shall account for the profits earned from any transaction of the Firm or by the use of the property in any business transaction of the Firm.
(16) Any party hereto shall not, without the consent of the other –
(a) submit any dispute with any other person to arbitration or compromise or relinquish any claim of the Firm,
(b) withdraw any suit or legal proceedings filed by the Firm,
(c) Admit any liability of the Firm.
(d) acquire or dispose of any immoveable or moveable property, except the stock in trade in the ordinary course of business.
(e) enter into partnership or other business unilaterally with any other person.
(f) assign or transfer his share or any interest in the Firm.
(g) Admit any person as a partner in the Firm.
(h) borrow any moneys for or in the name of the Firm, or create any security or charge on the assets of the Firm.
(i) enter into any contracts except contracts in the regular course of business of the Firm.
(j) stand as guarantor or surety for any person, in the name of the Firm or for and on behalf of the Firm.
(17) If any dispute or difference shall arise between the parties hereto touching the business of the firm or interpretation any provision hereof or otherwise, howsoever relating to the Firm and its business the same shall be referred to arbitration of a common arbitrator if agreed upon, failing which to two arbitrators one to be appointed by each party to the dispute and the arbitration shall be governed by the Arbitration and Conciliation Act, 1996.
(18) The parties shall, as early as possible but in any event within the prescribed period if any get the Firm registered under the Partnership Act, 1932 and notified under the Income tax Act, 1961
In witness whereof the Parties have put their signatures the day and year first hereunder written
Signed by the within named
. in the presence of ……