Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1.May, June and April are partners in an audit firm. The firm is managed by May and June while April only contributes capital and shares

1.May, June and April are partners in an audit firm. The firm is managed by May and June while April only contributes capital and shares in profit distribution. Five months ago, April retired as a partner when she sold all her shares in the firm to Emilia who has been accepted as a new partner. A year ago, the firm made a financial loan from AmBank for a period of 36 months. Ambank recently sued all four of them; May, June, April and Emilia for the payment of the loan arrears that the firm failed to settle for two consecutive months. April denied liability on the ground that she was no longer a partner while Emilia argued that she was not liable because she was not involved in the loan deal. Are April and Emilia's allegations true?

2. Eina, Anis and Amy are partners of Flamboyant Lady Salon. Amy is unhappy about a few things and seeks your advice on the following:

a) Amy is the most active partner in managing the salon and most skilful. Last month, the firm's loss was RM15,000. Amy refused to take liability for the loss claiming she was the one who brought the firm with profits previously. The partnership agreement does not specify any provisions relating to the distribution of losses and profits.

b) Amy plans to train her son at the salon but opposed by Eina despite the support of Anis. The partnership agreement provides that the consent of all partners is required if there is a problem arises concerning the firm.

c) Amy also advanced her money of RM10,000 to buy the salon's equipment. She wanted to claim interest on the advance of money at the rate of 10%. The partnership agreement does not have provision on the rights to claim interest.

Advise Amy by referring to the relevant statutory provisions and cases.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Criminal Law Cases And Materials

Authors: Joshua Dressler, Stephen Garvey

9th Edition

1647087708, 978-1647087708

More Books

Students also viewed these Law questions

Question

What does this look like?

Answered: 1 week ago