RETIREMENT OF PARTNER
Section 32 of the Partnership Act deals with the statutory provisions relating to retirement of a partner from partnership firm. These provisions are summarised below:
(i) A partner may retire from the firm
(a) in accordanc with an express agreement; or
(b) with consent of all other partners; or
(c) where the partnership is at will, by giving a notice in writing to all the other partners of his intention to retire.
(ii) A retiring partner may carry on business competing with that of the (in and may advertise such business. Btt he has no right to:
(a) use the name of the firm,
(b) represent himself as carrying on the business of the firm,.or
(c) solicit the custom of the old customers of the firm except when he obtains these rights by an agreement with the other partners of the firm.
- A retiring partner will not be liable for liabilities incurred by the firm after his retirement. However, he must give a public notice to that effect Such a public notice is not necessary in case of a sleeping or dormant partner.
- Retirement of a partner by death or insolvency also does not require, any public notice.