Can a capitalist partner engage in business similar to the kind of business in which the partnership is engaged?A capitalist partner may engage in the same line of business in which the partnership is engaged. An industrial partner may not engage in business for himself without the consent of his co-partner. An industrial partner who engaged in business for himself by be excluded from the partnership.
Can an industrial partner engage in a business other than that of a partnership?An industrial partner cannot engage in business for himself, unless the partnership expressly permits him to do so; and if he should do so, the capitalist partners may either exclude him from the firm or avail themselves of the benefits which he may have obtained in violation of this provision, with a right to damages ...
What is the remedy of the capitalist partner of the industrial partner engage in business for himself without the express permission of the partnership?Statement 2: If the industrial partner engages in business for himself, without the express permission of the partnership, the capitalist partners have no right to exclude him from the firm or to avail themselves of the benefits which he may have obtained.
What is the difference between capitalist partner and industrial partner in the distribution of profits and losses as well as in engagement in their own respective business?As a general rule, industrial partners don't participate in company losses although it is possible to agree something different in the company operating agreement. Capitalist partners will participate in company losses in the same proportion as in benefits.
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