ADVERTISEMENTS:

What are the rights and duties of partners in Business?

The rights and the duties of partners in Business?

The rights and obligations of the partners are described in the partnership deed. In the absence of a bonafide partnership deed, the provisions of the Partnership Act with regard to rights and obligations will apply. The followings are some of the rights of a partner:

  • Every partner has a right to take active part in the management and administration of the firm.

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  • The books of accounts of the firm must be kept at the principal lace of business and every partner has a right to have access to the accounts of the firm and he can have a copy of accounts.
  • Every partner has a right to continue in partnership.
  • Every partner has right to retire according to agreement or consent of all partners.
  • very partner has a right to share profit and losses equally in the absence of partnership deed.
  • If a partner has given any loan or advance to the firm, he is entitled to interest on loan at 6 percent p.a.
  • Every partner has a right to prevent admission or retirement of a partner.
  • A partner is not liable for any activities in the firm before his admission.
  • Every partner has a right to sue for dissolution of the firm.
  • The partners have a right to do all such acts in the time of emergency which would protect the firm from losses.
  • Every partner has a right to be indemnified by the firm for the payment made or liabilities incurred by him in the ordinary course of conduct of the business.
  • The outgoing partner has a right to carry on similar business operations without the use of firm’s name.

ADVERTISEMENTS:

The following are the main duties of partners:

  • Every partner is bound to carry on the business of the firm to greater advantage.
  • Every partner has a duty to work hard and conduct the business in the best and common interest of the firm.
  • A partner shall not carry on any business competing with firm’s business.
  • Every partner is bound to keep and render proper books of accounts.
  • Every partner has a duty to contribute equally for the losses incurred by the business.
  • Every partner has a duty to attend diligently to his duties and render true accounts and information.
  • Every partner is bound to use the property of the firm exclusively for the partnership business.
  • No partner can transfer his interest in the firm except with the consent of all partners.
  • Every partner is bound to act honestly, faithfully and diligently for the conduct of the business.
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