Partnership Act

Partnerships One Of More Common Modes Of Business Operation In Malaysia

Introduction

Partnerships are one of the more common modes of business operation in Malaysia. There are many partnerships in the country. Partnerships are formed to operate concerns varying from trading firms to professional firms (e.g. legal, accounting and medical practices). A basic knowledge of the law governing partnerships is important to bankers, accountants and the business community as a whole. The law of partnership is governed by the Partnership Act 1961 (Revised 1974). This is similar to the English Partnership Act 1890. A number of principles of law arising from the English Act apply in Malaysia. Section 47(1) of the Partnership Act 1961 I provides that the rules of equity and of common law applicable in partnership will I continue in force, except in so far as they are inconsistent with the express provisions of the Act. In Peninsular Malaysia, it is necessary that all partnership businesses, as well as sole proprietorships must be registered with the Companies Commission of Malaysia I (CCM) in compliance with the requirements of the Registration of Businesses Act, 1956 (Revised 1978)1. Prior to the establishment of the CCM in April 2002, the | functions relating to registration of businesses was undertaken by the Registrar of Businesses.an addition Islamic jurisprudence did not leave out any kind of human activity whether it was legal or illegal. Muslim jurisprudents discussed at length all kinds of activities and formulated judgments on them derived from the Shari 'ah. The subject of partnership is no exception. A person may need to enter into partnership with others either out of his own free will or unwillingly. Islamic jurisprudence has explained all things concerning partnership and companies. The Arabic word sharekah (partnership or company) means mixing two shares in a way to make them indistinguishable. The share may be money, labor or anything else. In this sense, we...