Sam is the managing partner of a firm where the other partner, Mike, is dormant. The Articles of Partnership provide that "a partner acting in the partnership business shall be entitled to reasonable remuneration".
Sam, a month ago, in annoyance, introduced Alfred as a new managing partner following Mike's refusal to sign cheques for Sam's salaries on the ground that Section 6 of the Partnership Act provides that "no partner shall be entitled to remuneration for acting in the partnership business."
Required:
(a) Comment on the validity of the introduction by Sam of a new managing partner.
(b) Is Mike right in refusing to sign cheques for Sam's salaries? Explain.
Would the answer to (b) above be different if there was no Partnership Agreement between the parties? Give reasons.