partners are the person who have mutually entered into the partnership firm and are liable for the liabilties of the business as well as enjoys the authority.There are six kinds of partners as listed in the act.
- Active or Actual Partners: These are the partners who actively take part in the conduct of the partnership business are called “actual” or “obsentsible” partners. Such a partner must give public notice of his retirement from the firm in order to free himself from liability for acts after retirement.
- Sleeping or Dormant Partners: These are the partners who merely put in the capital(or even without capital they may become partners) and do not take active part in the conduct of the partnership business. They do share profits and loss and have voice in management but their relationship with the firm is not disclosed to the general public. Not required to give notice for the retirement.
- Silent Partners: These partners do not have any voice in the management of the partnership business are called “silent” partners. They share profits and losses and are liable for the debts of the firm.
- Partners in profits only: A partner who has stipulated with other partners that he will be entitled to certain share of profits only without being liable for the loss is “partner in profits only”.
- Sub-Partners: When a partner agrees to share his share of profits in a partnership firm with an outsider, such an outsider is called sub-partner.Such partner does not have any rights in management and also he is not liable for the debts of the firm. Important point to note here is the sub partner can only be chosen only with the consent of the other partners.
- Partner by estoppel or holding out: If a person represents to the outstanding world by words spoken or written or by his conduct or by lending his name, that he is a partner in a certain partnership firm, he is then estopped from denying his being a partner and is liable as a partner in that firm to anyone who has on the faith of such representation granted credit to the firm, Actually such a person is not s partner in that firm -no agreement, no sharing in profits and losses , no say in management , may not be knowing exact place of business, but as he holds himself out to be partner, he becomes responsible to outsiders as a partner, he becomes responsible to outsiders as a partner on the principle od estoppel or holding out.