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Transfer of partner’s interest

The partner’s interest in the firm means the amount of his share in the assets and profits of the firm. A partner cannot sell his interest in the firm to an outsider in such a way as to make an outsider a partner in the firm without the consent of all other partners. However, he may sell the interest in the firm to an outsider without making him a partner in the firm.
However, the transferee is not entitled to:
  • Interfere in the conduct of the firm
  • Require accounts of the firm
  • Inspect the books of the firm
A transferee becomes entitled to receive the share of profit of the transferring partner and must accept the accounts or profit agreed to by the partners. If a firm is dissolved, he is entitled to receive the same share in the assets of the firm, which the transferring partner had.

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