Question

300-400 words

1. Explain Default Partnership Rules under Partnership Act.

2. Explain in detail Articles of Incorporation.

Answer 1

1. Partners are obligated to carry on the firm's business to the greatest common benefit, to be honest and loyal to each other, and to make accurate accounts and full knowledge to each partner, his successor or legal representative of all things that affect the company. According to the provisions of this Act, the contractual rights and duties of a company's partners may be defined by a contract between the partners and that contract may be express or implied by the nature of the transaction Such a contract may be changed by the agreement of all partners and such agreement may be express or implied by the transaction process.

Subject to a contract between partners (a) each partner has the right to engage in the conduct of the business; (b) each partner is bound to perform its duties faithfully in the conduct of the business; (c) any discrepancies occurring in the ordinary matters relating to the business may be determined by a majority of the partners and each partner has the right to express his or her opinion.

Subject to a contract between partners (a) the partner shall not be entitled to receive remuneration for taking part in the operation of the business; (b) the partners shall be entitled to share equally in the income received and shall contribute equally to the losses suffered by the company; (c) if the partner is entitled to interest on the capital subscribed by the partner, the interest shall only be payable in respect of the capital subscribed by the partner.

2. Articles of Incorporation are a collection of formal documents which define a company's existence in the United States and Canada. In order for a business to be legally recognized as a corporation, it must file certain papers with the registrar of the Secretary of State or company where the company opts to operate. Many states, including Nevada and Delaware, draw a significant number of companies seeking incorporation because of their attractive tax incentives and regulatory environments. The key components of the Articles of Incorporation include the company name, form of corporate organization, registered agent, number of approved shares and the corporation's owners 'names and signatures.

Purpose of Incorporating

Establishment of perpetual existence Perpetual life ensures that even with the retirement or death of the owners and managers, the company can continue to function in future. This allows businesses more permanent over an unincorporated company which may end by the death or departure of all or any of its shareholders. The incorporation also allows the transfer of the company's assets to another person.
Tax advantages The establishment of a company in some states helps businesses to receive tax breaks on some of their operating costs. Any of these costs include manufacturing costs, staff wages, compensation premiums, health benefits and renewable energy investments.

Liability insurance An incorporated entity acts as a separate entity from the owners, and this ensures that the owners / founders 'personal assets are shielded from corporate liabilities. For example, if the company owes money to creditors, creditors would not be able to sell the owners 'personal assets, such as residential property, motor vehicles and bank accounts to fund the business debts. However, if the business operates as an unincorporated entity, the owners face the risk of losing their assets to pay business debts.

Required provisionsThe terms of the Articles of Incorporation must comply with state laws and regulations regulating corporate registration. Some of the requirements specified in the Articles of Incorporation include the corporation's name and address, statements indicating the reason for which the business is incorporated, the period of incorporation, etc. The incorporator must comply with all the required conditions to be accepted for the company.