Types of partnerships

                                    Types of Partners

General partner/ Active partner

He actively participates in the affairs of the partnership.His debility or death would result in the termination of the partnership.He has the right to actively participate in the managerial activities of the partnership.He has unlimited responsibility regarding his business activities.
  

   features

- Contributes to the capital

- Unlimited liability 

- Activity participates in managerial activity 

- Has claim over profit and loss 

- Usually draws a salary or a wage 

- Public knows that he is a partner

Dormant/sleeping partner

He invested capital, but does not participate in the managerial activities of the business 

    features

- Contributes to the capital

- Unlimited liability

- Does not participate in the managerial activity 

- Public is not aware that he is a partner

- Has claim over profit and loss

- Usually he does have a right to a salary  or wage 

Silent Partner

he is a partner who has invested capital to business and enjoy profit and loss but does not get involved in managerial activities

   features

- Contributes to the capital 

- Unlimited liability 

- Enjoy profit and loss 

- Participate in managerial activities 

- Public knows that he is a partner 

Secret Partner

He is a partner who invests capital in his business with unlimited liability, enjoys profit and loss and participates in managerial activities.

   features

- Contributes to the capital

- Unlimited liabality

- Participates in managerial activities 

- Public is not  aware that he is a partner

- Usually gets a salary or a wage

  Nominal partner

He does not contribute to the capital of the business. He  invites his popular name or the good will only . Liability is unlimited and enjoy profit and loss. Does not participate in managerial activity 

Eg:  Famous sportsman (sanath jayasurya ),famous actor (sharook khan)

   features 

- Does not contribute to capital

- Liability is unlimited 

- Enjoys profit and loss

- Does not participate in managerial activities

- Public knows that he is a partner

     Limited partner 

His liability only to the amount of capital he has invested.He is not permitted to participate in managerial activity. But enjoys profit and loss. Liability is limited.

  features

 - Liability is limited

- Contributes to the capital

- No rights to participate in managerial activities

- Public knows that he is a partner

- If a part of capital were to be removed as drawing the approval of the rest partners are required

- His death,bankruptcy and debility would not result in liquidating the partnership

- He many transfer his share to another limited partner on the consent of others

    Quasi partner    

He is a partner who has  retired from his partnership. But he invest his capital in the business and makes profits. He is entailed to a variable interest or an additional profit based on the profits earned by the business .

 features

- Contributes to the capital

- A retired partner

- Unlimited liability

- He has a right to an additional interest or a profit, based on the profits of the business 

- No permission to participate in managerial activities

- Public knows that he is a partner

First partner 

The partner whose name appears first in the document of registration of the agreement and other publication. Usually problem such as tax payments are addressed to the first partner 

Duties of partners 

- Every partner should contribute ti the capital

- Profit and loss should be shared on agreed ratio

- No partner should make secret profits from the activities of the partnership

- Should not derive a salary or a wage, by participating in partnership activity 

- Should not engaged in competitive business with the partnership business

- Should maintain the confidence of the partnership as well as the confidence among the partners 

-  Should not behave in a way damaging the goodwill of the partnership

- Should be jointly and severally, liable for the activities of the partnership

- The liability of all the partners is unlimited on the loans taken by the partnership 

Rights of the Partners 

 - The right to share profit in the agreed ratio

- The rights of all other partners to share secrets profiles when a single partner receives such profiles

- The rights to participate in the affairs of the partnership

- The rights check up the books of the partnership 

- The right to get at least a minimum of 5% interest on moneys invested besides the capital that has been invested 

- Right of reimbursement of expenditure incurred personally or the partnership

- The rights  to enter the agreements on behalf of the partnership.

- The right to recruit staff on behalf of the partnership