Question from AC, Which section of the 1932 Partnership Act (for Bangladesh) deals with partners’ authority and any restrictions on it?
Answer from AI:
The Partnership Act of 1932, which governs partnerships in Bangladesh, outlines the authority of partners and any restrictions on it in several sections. The most relevant sections are Section 19, Section 20, and Section 21.
Section 19: Implied authority of a partner
Section 19 of the Partnership Act 1932 deals with the implied authority of a partner. It states that a partner has the authority to do any act for carrying on in the usual way the business of the kind carried on by the firm. However, this authority is subject to any agreement between the partners.
Section 20: Extension and restriction of partner’s implied authority
Section 20 of the Act further explains the extension and restriction of a partner’s implied authority. It states that the partners in a firm may, by contract between them, extend or restrict the implied authority of any partner.
Section 21: Partner’s authority in an emergency
Section 21 of the Act deals with a partner’s authority in an emergency. It states that a partner has authority, in an emergency, to do all such acts for the purpose of protecting the firm from loss as would be done by a person of ordinary prudence, in his own case, under similar circumstances.
Please note: This is a general explanation and may not cover all aspects of the law. The Partnership Act 1932 is a complex piece of legislation and its interpretation can depend on specific circumstances. For personalized advice, it is recommended to consult with a legal professional.
For more detailed information, you can refer to the Partnership Act 1932 directly.