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.
- 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.
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.