A company with five partners is facing a tricky situation. One partner has sadly passed away, and another has a significant investment of around ₹250,000. The remaining four partners, unfortunately, have negative capital balances. Now, the partner with the positive capital wants to take control of the company. Is there any legal or practical way for them to achieve this? If so, we’d be happy to discuss the possibilities further.

Apni Law
Apni Law
Law Forum › Category: Corporate › A company with five partners is facing a tricky situation. One partner has sadly passed away, and another has a significant investment of around ₹250,000. The remaining four partners, unfortunately, have negative capital balances. Now, the partner with the positive capital wants to take control of the company. Is there any legal or practical way for them to achieve this? If so, we’d be happy to discuss the possibilities further.
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Apni Law Staff asked 2 months ago

A company with five partners is facing a tricky situation. One partner has sadly passed away, and another has a significant investment of around ₹250,000. The remaining four partners, unfortunately, have negative capital balances. Now, the partner with the positive capital wants to take control of the company. Is there any legal or practical way for them to achieve this? If so, we’d be happy to discuss the possibilities further.

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Apni Law Staff answered 2 months ago

Indian law allows for a partner’s share to be transferred upon death, usually to their legal heirs. The partner with positive capital could propose a buyout of the deceased partner’s share and potentially gain control. However, the other partners may have rights regarding the deceased partner’s share, and the remaining partners’ negative balances might affect the situation.

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