After reading this article you will learn about the rights and duties of partners.
Rights of Partners:
The rights of partners are given below:
1. Every partner has the right to participate in the conduct and management of the business.
2. Every partner has the right to have access to and to inspect and copy any of the books of accounts of the partnership firm.
3. Every partner has the right to be consulted and heard in all matters affecting the business of the firm.
4. The partners have the right to share equally in the profits earned and shall contribute equally to the losses sustained by the partnership firm.
5. No person can be taken as a partner in the partnership firm without the consent of all the existing partners.
6. Every partner has the right to be indemnified by the firm in respect of payments made and liabilities incurred by him in the ordinary and proper conduct of the business.
7. A partner has the right to retire from the firm with consent of all the existing partners or in accordance with agreement among the partners.
8. A partner making for the purpose of partnership, any payment or advance, beyond of capital which he has agreed to subscribe, is entitled to interest at the rate of 6 per cent per annum.
9. Any difference arising as to ordinary matters connected with the business of firm may be decided by a majority of the partners.
10. An outgoing partner is entitled to claim a share in the profits as may be attributable to the use of his share of the property of the partnership firm.
Duties of Partners:
The duties of partners are given below:
1. Every partner of the firm is bound to attend diligently to his duties in conducting the partnership business.
2. Partners are bound to carry on the business of the firm to the greatest common advantage.
3. Every partner is liable to the partnership firm for any loss caused to it by his willful neglect in the conduct of the business of the firm.
4. A partner is not entitled to get any remuneration for taking part in the conduct of the business.
5. No partner can assign or transfer his partnership interest to any other person so as to make him a partner in the partnership.
6. Partners are bound to be just and faithful to each other.
7. Partners are bound to render true accounts and full information of all things affecting the firm to any partner or his legal representative.
8. A partner shall be liable to account for and pay to the firm any private gains derived from the transactions of the firm or from the use of the property of the firm.
9. A partner is bound to work within the scope of the actual or implied authority.
10. A partner cannot carry on any business of the same nature as and competing with that of the firm. If he does so, he shall account for and pay to the firm all profits made by him in that business.