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Kinds of Partners

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KINDS OF PARTNERS. In respect to their relation to the partnership, partners are vari ously designated as: Ostensible, Secret, Nominal, Si lent, Dormant, Retiring, Incoming, General and Spe cial partners.

An Ostensible partner is one who is publicly held out to the world as a partner, as by being joined in the name, sign, letter heads, and the like. A Secret part ner is one who keeps himself concealed from the pub lic, and from all customers of the partners. He profits by his secrecy only while it continues.

A Nominal partner is one who, though not a partner in fact, is held forth as a partner with his own consent so as to make him liable as a partner, on the ground that he has given credit to the firm, and authorized transactions on his responsibility.

A Silent partner is one who takes no active part whatever in the business of the firm, and exercises none of the rights of a partner except that of receiving his share of the profits. Such a partner is the opposite of the active partners or those who participate in the firm undertaking. A partner who does not participate in the business is a silent partner, whether he is known or not as a partner.

A Dormant partner is one who is both unknown and secret to the public and wholly inactive concerning the affairs of the firm.

A General partner is one who, as a member of a lirn ited partnership, transacts the business of the firm; whose name is used in the firm name, and who is liable to the full amount for the debts and obligations of the firm. A Special partner is one who contributes a spe cial amount of capital to a limited partnership, and who, by complying with the provisions of the law under which the limited partnership exists, is not lia ble for debts of the firm beyond the amount which he contributes.

A person who leaves an existing firm is called a Re tiring partner; and one who enters such a firm is called an Incoming partner.

partner, firm and partnership