We are three partners in a business. Partner 'A' is the full-time worker.

Answer

The partnership is not valid. The salary for Partner 'A' renders the partnership faasid (corrupt and invalid). The partner who works more may or should be given a higher percentage of the profit. Partner 'A' should return all the amounts which he withdrew as 'salaries'. The contract should be initiated afresh.

Regarding the past irregularity, take stock and ascertain the current position of the business. All monies taken by the partners should be returned. If any partner does not have it in cash, then at least take it into account in order to calculate the profit or loss of the past. If the business has shown a net profit to date, then share the profit in the ratio of each partner's capital investment, and similarly, if there is a loss.

Calculate the position, then whoever has to pay in should pay or make arrangements to pay. After the accounts have been drawn up and accepted, then there can be a mutual agreement to waive and forgive the partner who may be unable to pay back what he owes.