Rights and Duties of Partners
The mutual rights and obligations are usually stated in the partnership deed. In the absence of any deed, the provisions of the partnership Act as stated below will apply.
Rights of a Partner
Every partner has a right to take part in the management of the business.
Every partner has the right to be consulted in all the matters concerning the firm. The decision of the majority will prevail in all the routine matters. But, where the matter is of fundamental importance such as admission of a new partner, change in the nature of business etc., decision must be unanimous.
Every partner has the right of access to all records and books of accounts, and to examine and copy them.
Every partner is entitled to share the profits in the agreed ratio. If no profit- sharing ratio is specified in the deed, they must be shared equally.
A partner has the right to receive interest on loans advanced by him to the firm at the agreed rate, and where no rate is stipulated, interest @ 6% p.a. allowed.
Every partner has the right to be indemnified by the firm for all acts of other partners in the ordinary course of the business. He has a further right to receive back any amount spent by him on behalf of the firm. Only thing is he must have acted prudently.
Every partner has the right to use partnership property for the purpose of the partnership.
Every partner has a right to retire as per the terms of the deed or with the consent of the other partners. In case of partnership at will, he can retire at any time by giving prior notice to the other partners.
Every partner has the right to continue in the firm. He cannot be expelled except in accordance with the Partnership Deed.