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Question
Assertion :When a partner is expelled otherwise than in good faith, it is null and void and he continues to be a partner. Reason: The outgoing partner cannot carry on a competing business or advertise such business.
Assertion :When a partner is expelled otherwise than in good faith, it is null and void and he continues to be a partner. Reason: The outgoing partner cannot carry on a competing business or advertise such business.
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Solution
The correct option is A Both Assertion and Reason are correct and Reason is the correct explanation for Assertion
According to the Partnership Act 1932, the partners those are in agreement with the partnership deed can expel any partner with majority. If the partners expelled are in good faith with the business then their expulsion stands null and void.
According to the Partnership Act 1932, the partners those are in agreement with the partnership deed can expel any partner with majority. If the partners expelled are in good faith with the business then their expulsion stands null and void.
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