ACCA Applied Skills · Corporate and Business Law (Global) · Partnerships
Efua, Farid and Gita are partners. Their agreement is silent on changes in membership. Efua wishes to introduce her friend Hugo as a new partner. Farid agrees but Gita objects. What is the position under the default rules?
Hugo cannot become a partner without all existing partners agreeing. The default rule requires unanimous consent to admit a new partner, so Gita's objection prevents it, even though Efua and Farid agree.
- AHugo becomes a partner because a majority of the partners consent
- BHugo cannot become a partner without the consent of all existing partnersCorrect
- CHugo becomes a partner if Efua gives him a share of her own profits
Explanation
By default, no person may be introduced as a partner without the consent of all existing partners. Majority approval is not enough. Efua may share her own profit with Hugo, but that does not make him a partner.
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