Question
We are two partners in a business. The shares are 40% and 60%. The 40% partner has died. How should this partnership be dissolved? Do the heirs of the deceased partner inherit the deceased's partnership share? Do they become 40% partners in the business?
Answer
Death cancels the deceased‟s partnership. His partnership share is not inherited. His share of the assets is inherited by the heirs. It is Waajib to assess the financial state of the business as at the date of death. 40% of the profit must be given to his heirs. The heirs have no right to demand being taken as partners. It rests with the other partner to decide to accept them as partners or not.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 28 No 05
- PDF page
- 11
Verbatim verified against the source PDF
Appears under THE SHIFAA’ AAYAAT. This heading is the nearest headline at or before the page and is approximate. Do not cite it alone.