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If the deed says all partners will take part in management but no extra salary is allowed when can a managing partner salary be given?

Answer and explanation

Correct answer: On deed amendment or consent of all

The direct answer is option C: salary can be given only after an amendment to the deed or with the consent of all partners. The deed says that all partners will participate in management and that no extra salary is allowed. Therefore, management work is already part of the partners’ agreed duties, and a managing partner cannot demand an automatic separate payment. To create such a right, the partners must change the deed or clearly agree to the remuneration. Option A is wrong because salary does not arise automatically every year when the deed expressly denies extra salary. Option B is wrong because an oral demand by one partner cannot normally change the agreed terms or bind all partners. Option C is correct because an amendment or unanimous consent provides the required authority. Option D is wrong because low profit does not itself create a salary right; in fact, salary may be restricted by the agreement and available profit. The key distinction is between doing management work and having a contractual right to remuneration. Memory cue: extra work alone is not extra salary; authority must come from the deed or all partners.

Related tags

Partner SalaryManagement ClauseConsent

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