Section 3
Section 3
Partnership is the relation which subsists between persons carrying on business in common with a view of profit. Definition of partnership.
(2)
The relation between members of any company or association which is—
(a)
registered as a company under the Companies Act, Act 125. 1965 or as a co-operative society under any written law relating to co-operative societies; or
(b)
formed or incorporated by or in pursuance of—
any other law having effect in Malaysia or any part thereof; or
(ii)
any letters patent, Royal Charter or Act of the Parliament of the United Kingdom,
(b)
the sharing of gross returns does not of itself create a partnership, whether the persons sharing such returns have or have not a joint or common right or interest in any property from which or from the use of which the returns are derived;
(c)
the receipt by a person of a share of the profits of business is prima facie evidence that he is a partner in the business, but the receipt of such a share, or of a payment contingent on or varying with the profits of a business, does not of itself make him a partner in the business; and in particular—
is not a partnership within the meaning of this Act.