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
Every partner has the right to continue
in the firm. He cannot be expelled except in accordance with the Partnership