Deed of Retirement from a Partnership Business in India

About this document:

This Deed of Retirement will help to conveniently relieve one partner from the responsibilities in a partnership business. The document has been drawn to address a situation where the retiring partner leaves on a voluntary decision. This agreement covers all aspects in the concept and the partnership business is continued by the remaining partners. The document is fit for use in any kind of partnership business – service, trading or manufacturing as the case may be irrespective of size of the business or industry segment;

This document comes with a supplementary document in the form of a letter of resignation from the outgoing partner, which is helpful in retaining and saving the bonafide character of the arrangement and is useful as a safeguard to a potential post retirement dispute being raised in a court of law by the retiring partner. There is no additional cost for the letter.

Who will use this document?

·         Any partnership business wanting to settle issues with a retiring partner voluntarily leaving the partnership business;

·         One or more partners seeking to come out of a partnership business of multiple partners and leaving the said business to the rest of the partners;

Key features:

·         all usual basic provisions to protect the interests of the partnership business;

·         explanatory notes to cover every issue;

·         flexible to suit peculiar situations;

·         Simple user friendly language with minimum use of legalese;

·         Real law. No complexities;

·         Compliance with existing laws;

·         Wide-ranging coverage of all eventualities;

This document includes provisions for:

·         Relinquishment by the retiring partner of any property owned by the partnership business;

·         New Shareholding pattern in partnership specified;

·         Liabilities of the departing and continuing partners clearly defined;

·         Confidentiality and Intellectual Property Rights;

·         Compensation for retiring partner;

·         Power of attorney and undertaking by retiring partner;

·         Partnership shares in the new arrangement;

·         Banking and accounts;

·         Compensation or no compensation as the case may be;

·         Dispute resolution.

·         Declarations of the retiring partner;