You would be told everywhere that a sleeping partner has an equal share of income even if he invests 75%. It’s true with-regard to a firm or a company having too many employees and 5-6 business partners. What if two other persons are managing business partners in a business and you a sleeping partner? You’re not involved in the business, but you an investor as sleeping partner in the business no lesser. How? Firstly sleeping partner is the one, who invests some percentage of money. If you an investor as sleeping partner even if invested 20% to the business, where there are two other managing business partners.
They both invested 40% each. Double the amount you invested. However, your 20% investment counts more because without which the business might not survive. The two business partners roped you in the business as a sleeping partner to run their business. So, the business income needs to be equally divided between you, and two other working or managing partners. No matter, they work hard to bring huge profits to the business.
The important or vital investment is of you and without your investment, there will be short of money. So the business need your money even without your services. That’s simple because you’re an investor and your services to the business not required, but your investment matters. Your investment counts here and you need not necessarily a lesser valued partner. A sleeping partner required when business have shortage of funds to operate. So, there’s nothing less than the working two other partners, you benefit the business too. This way you’re an investor as sleeping partner. And so you need to know that you also get an equal share of the profits, equally divided among the three of you.
If this is the case in such business, where 2-3 partners work and if they’re in shortage of money to operate a business, then what they do? They want you to be an investor as sleeping partner to operate the business smoothly. Otherwise the business’s working partners always prefer not to share the profits to someone else than among them. The need for money comes in their way and so they convince you to invest in the business, showing the potential. So, there’s nothing wrong for you to ask for profits to be divided equally. Your role also counts even if you’re “sleeping”.
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