BLP WS1 (Partnership)- i-tutorial (prep task answers starts on p.11) . READ TEXTBOOK CH. 14, 16 . Answer the exercises in textbook Knowledge (Company Act says-> where to look certain things) and Skills (putting it in the practice-> be able to think what is the principle, link it and relate to a certain facts, draft meetingtisent letter or memo setting out what does they want to achieve, i.e. limit voting rights for new shareholder) Exam: (1) MCQ (closed book, 20 marks available-> you have 10 simple questions i.e. what section is this, how many days for that? 10 scenario based questions (Can A blocked the shares?) " Based on business knowledge " Probably will be the same date of the 2nd exam 5th march (2.tt0) (2) Written paper exam (open book, tt hours, usually 4 questions, 80 marks available) " Wider subject matter, including tax and professional conduct " Lecture (consolidation, handy tips on how much time you spent on each question) " Tackle the questions in order as it might be sequential " Look at the number of marks available, how many minutes per mark? 5th march (9.tt0) Mocks: 29th October (make a pile thin skeleton notes-> see if it is sufficient) " P (principle), E (Explain), R (relate to the facts), C (conclusion) " Debts? Would she be liabletinot liable Introduction . Today's global economy is very different to that start of the 20th century, and despite of the advantages of limited liability, general partnership remains the medium choice that many people, particularly members of profession. . There are tax transparencies which means that the profits they generate are chooses for tax purposes of profits of the partners Definition of partnership . S.1(1) Partnership Act 1890 "Partnership is the relation which subsists between persons carrying on a business in common with a view of profit." Definition of "business" · S.45 Partnership Act 1890 In this Act, unless the contrary intention appears, ... the expression "business" includes every trade, occupation or profession. Importance of appreciating how partnerships are created · To set one up · To pursue a claim based on existence of partnership - All partners liable for firm debts - Partners owe obligations and duties to one another · Criteria in s.1 Partnership Act 1890 1
Creation of Partnerships Accidental and formal partnerships · Accidental partnerships-joint ventures . Business carried on 'in common' (s.1(1) PA 1890) · Sharing gross returns (s.2(2) PA 1890) Once established that the partnership existstito be created, the questions arises as to the terms of the partnership. (Form of a deed: Terms should be expressly stated and in writing) The Partnership Agreement Partnership Act provisions vs 'proper' agreement . S.19, Partnership Act 1980 "The mutual rights and duties of partners, whether ascertained by agreement or defined by this Act, may be varied by the consent of all the partners, and such consent may be either express or inferred from a course of dealing" . S.24 (5), Partnership Act 1980: Participation in management ·