Partnership 339So a majority of the partners in a firm of car dealers could take the decision to move to
new premises. The decision to move into a new type of business, such as selling videos,
would have to be unanimous.
Partnership books
Section 24(9) says that the partnership books are to be kept at the firm’s place of business,
and that every partner may have access to them, when he or she thinks fit, and inspect and
copy any of them. A partner may also appoint an agent to inspect the books on his or her
behalf.
Expulsion of partners
Section 25 provides that: ‘No majority of the partners can expel any partner unless a power
to do so has been conferred by express agreement between the partners.’
This express agreement may well be contained in the partnership agreement. It is fairly
common for an article in a partnership deed to lay down that a partner can be expelled for
breaking the partnership rules. Even if this is the case, the expelling partners must exercise
the article in good faith. They cannot use the article to unjustifiably expel a partner. The
default provisions in s. 24 can be changed by express or implied agreement between the
partners. The provision in s. 25 can be changed only by express agreement. So an agreement
to change it could not be implied from the conduct of the partners.
Figure 12.3 shows the effect of ss. 24 and 25.
Figure 12.3The default provisions in sections 24 and 25 PA 1890