ipa 2 Flashcards
1
Q
expulsion of partner (33)
A
A partner may not be expelled from a firm by a majority of partners except in exercise, in good faith, of powers conferred by contract between the partners.
It is, thus, essential that:
the power of expulsion must have existed in a contract between the partners;
the power has been exercised by a majority of the partners;
and it has been exercised in good faith.
good faith 33(1)
The explusion must be in the interest of the partnership
The partner to be expelled is served with a notice
He is given an opportunity of being heard.
If a partner is otherwise expelled, the expulsion is null and void