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.

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.