Duties of a Partner
Following are the main duties of a partner.
1. To carry on the business of with sincerity:
The first foremost duty of a partner is to carry on the business of the partnership enterprise in the maximum advantage of all the partners and the partnership enterprise. A partner should use his ability and knowledge for the benefit of the business of partnership and not for his personal gain.
2. To observe utmost good faith:
Every partner must act in a just and faithful way towards other partners. A partner should not conceal the material facts from the other partner relating to the partnership affairs.
3. To render true accounts and information:
Partners must render true, proper and correct accounts to each other and must permit other partners to inspect and copy the accounts.
4. To indemnify the firm:
A partner is bound to indemnify the firm for any loss caused by his negligence or breach of trust in the conduct of the business of the concern.
5. Not to carry on any business in competition with the firm:
A partner should not carry any business which directly or indirectly compete with the business of the partnership firm. If he carries on such business, he must hand over the profits of such a business to the firm and firm will not be responsible for losses of such a competitive business carried by the partner.
6. Not to hold the property of the firm:
The property of the firm belongs to all the partners. Every partner should hold the property of the firm including goodwill for the purpose of the business of the firm exclusively but not for their personal use.
7. Not to make secrete profits:
A partner should not earn secrete profits. If he does so, he has to surrender to the firm all the secrete profits earned by him.
8. Not to transfer interest:
A partner cannot assign and transfer his interest in the firm to another person without the consent of all the other partners.
9. To act within the scope of the authority:
Every partner should act within the scope of his authority assigned to him by the firm. He is bound to indemnify the firm, if he acts beyond authority assigned entrusted to him.
10. To share losses:
In the absence of any contract to the contrary, every partner is liable to share losses of the firm equally along with the other partners or on the basis of profit sharing profit.
11. Not to receive any remuneration:
Subject to the clauses of Partnership Deed, partners are not entitled to receive any remuneration in addition to their share in the profits in the firm. It deed permits, then only they can draw away as agreed upon by the partners.