Partnership agreement pt.2

TEN                No partner shall without the express consent of the other partners do any of the following acts:

(a)        draw, accept or endorse any bill of exchange or promissory note, or contract any debt, on account of the partnership or in any manner pledge its credit or employ its funds, except in the normal course of its business;

(b)       lend money to, or give credit to or have dealings on behalf of the partnership with any person, firm or company whom the other partners have forbidden him to lend to or give credit to or have dealings with respectively;

(c)        release, compromise or compound any debt owing to or any claim of the partnership;

(d)       take any steps by way of management, control or conduct of the partnership business which are not in accordance with the policy laid down by the partnership;

(e)        on behalf of the partnership, guarantee payment of or discharge any sum or claim, other than by way of undertaking given in the normal course of business of the partnership;

(f)        whether on behalf of the partnership or as an individual, become cautioner for grant any guarantee or security for any person, firm or company;

(g)       as an individual, enter into any speculative transactions other than by way of investment of his own free capital exclusive of any capital belonging to him in the business of the partnership;

(h)       knowingly do or permit anything to be done whereby the partnership property may be subjected to diligence of any kind;

(i)        assign or charge his share and interest in the partnership or any part thereof.

If any partner shall act in any way contrary to the provisions of this clause he shall indemnify the partnership for any loss resulting therefrom.

ELEVEN         If any party shall:

(a)        become apparently insolvent or enter into any competition or arrangement for the benefit of his creditors generally,

(b)       do any act prohibited by Clause Nine hereof;

(c)        grossly neglect the business of the partnership;

(d)       act in such a way as to bring his name or the reputation of the partnership into dispute;

(e)        act in any respect contrary to the provisions of this contract or to good faith between partners.

Then, in any of these events, the other partners may expel the partner concerned with effect from such date as shall be specified in a written notice given by or on behalf of such other partners to the partner concerned who shall be deemed to have ceased to be a partner on such date.