The silent partners in a tyre manufacturing business decide to sell their interest to the active partners.In order to calculate a fair price, the silent partners request that their accountant be given access to the partnership archived financial records held at the tyre warehouse under mountains of old boxes.The active partners refuse since the partnership legislation provides only for a right of access to the records by 'a partner'.What is the true position?

Question

Quizplus · Accepted Answer

All partners, whether active or silent, are entitled to have the records inspected by an agent for appropriate purposes. This is because the partnership archived financial records are considered joint property of the partnership and all partners have a right to access it for legitimate purposes, such as valuing their interest in the business. The fact that the legislation only refers to 'a partner' does not exclude the silent partners from this right.

The Silent Partners in a Tyre Manufacturing Business Decide to Sell