Monday, July 20, 2009

Incoming & outgoing partner; can an outgoing partner claim previous profit?

Question:-

Good day, Mr. Kamarul Irzuan,

I need some professional advice for my case. I hope you can make me more clearly in the case and guide me what to do for the next step.

Here is about my case:

I have built a company with my friend in year 2006. This is a partnership company. Everything is 50-50 ( No agreement ). I have withdrawn from this company and built another new company on early of March 2009. I have taken out my name from the ROC. Now my previous company is belonging to my ex-partner.

My question is:

  1. Can I get back the money from my previous company? That company is earning money all the time from 2006 to 2009.
  2. I had taken out my name at March 2009. We didn't sign for any agreement at that time. Verbally my ex-partner said he will return the money to me but after a month document signed, he told me he won't pay me even 1 cent. Reason is I already signed the document. I no more a part of the company. Is he right?
  3. I still pay the accountant fees and the income tax, 50-50 according to the account at June 2009. I have the company P&L on hand. My friend, an accountant told me I can should able to get back the half of the profit earns. It is right?

Thanks.

(name deleted)Melvin Hew

(h/p no: deleted)

Answer:-

  1. Rights of a partner in any partnership could be established even without a written profit-sharing or partnership agreement.
  2. In a simple presumption, if no agreement exist, and the partnership comprise of two people, then a 50-50 arrangement is easily understood.
  3. The withdrawal date would be the cutoff date for you the claim. In your case, March 2009.
  4. Before the cutoff date you are entitle for any profit of the partnership and also liable for any liability occurred during the period. That's also explain why you need to pay for tax and accountant fees.
  5. In short, yes you may claim your 50% share of the partnership business's profit, if any during the partnership…

Good luck.

1 comment:

  1. then what the bout, if you have the existence liability before quit the partnership (example loan or any credit purchasing), then on March 2009, you quit from it. is't true that you still burden with the liability and need to clear it?

    ReplyDelete