If there is no formal partnership agreement and no informal agreement as to what happens, then the 1890 Partnership Act still applies.
In the absence of an agreement to the contrary any partner gets an equal share of the profits even though they may do nothing.
As it is now, she is a partner and she is entitled to 1/3 of the profits unless there is an agreement to the contrary.
So I’m sorry to say, with no input to the contrary she is entitled to 1/3 financial return even if she sits at home and drink tea.
Of course, you can all sit at home and drink tea but then the business goes to rack and ruin. You could employ people (but not yourselves) so that there is no profit. But that would mean no profit for any of you.
Unfortunately, the Partnership Act which still applies, is woefully inadequate and there is no provision for one of the partners to be removed or retired or die without the partnership being dissolved which would mean basically selling off the business although there would be nothing to stop the 2 remaining partners buying it.
In essence, once she is made a partner, she cannot be unmade a partner unless she consents to leave and/or be bought out.
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Hopefully, I have answered your query in a way that is simple and easy to understand.
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I am happy to answer any specific points arising from this.
Please be aware that my answer is based strictly upon the information you have given me.
If you still need any points clarifying, I will be happy to reply because the thread does not close. In fact, it remains open indefinitely.
I am always happy to answer any further questions you have on any new thread in which case, please start your question with, “ For FES only”.
That only applies to new threads, not this one. You have me exclusively on this one.