Question
One of the partners in a business died. Do his heirs inherit the right of partnership in his place?
Answer
Death cancels the partnership. The heirs of the deceased partner do not become shareholders automatically in the business or property. A partnership with them has to be negotiated. If any heir refuses to be a partner, but wants to be paid in cash, then his/her share should be calculated and given to him. If the heirs are agreeable to being partners, then the partnership terms should be negotiated and fixed. Their percentage shareholding has to be agreed. It may be the same or more or less than the percentage of the deceased partner.
When a partner dies, his heirs become the owners of his share of the tangible assets in the business. If, for example, he was a 25% shareholder, then 25% of the assets belong to his heirs.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 26 No 05
- PDF page
- 3
Verbatim verified against the source PDF
Appears under DARUL ULOOMS. This heading is the nearest headline at or before the page and is approximate. Do not cite it alone.