Partnership Deed is a important document of the firm because it governs the firm’s operations and activities. The partners must abide by the clauses of partnership deed during its existence and must not act beyond the scope drawn. Hence, to expand or restrict the scope of activities or operations, partners have to change the partnership agreement.
The changes in Partnership deed are made by execution of a supplementary deed which is an addendum to the original partnership deed. Payment of suitable stamp duty is a must for said deed. The registration of the supplementary deed is compulsory if the firm is already registered with Registrar of Firm.
Reasons for change in partnership deed:
During the course of the business, some circumstance may emerge as:
- Place of business may change
- The old partners may resign or leave the Firm
- Partners may want to change the name of the Firm
- There might be confirmation of new partners in the Firm
- There might be a change in the name and perpetual address of the accomplices
- The minor Partner entered at the time of the constitution of the firm may get the larger part and so forth.
So, the Partners will undoubtedly inform the Registrar of Firms about such changes in the Partnership Firm.