Rights of Partners in Partnership

Rights of Partners in Partnership

Rights of Partners in Partnership

The rights of the partners are written in a partnership deed. If the rights are not mentioned in partnership deed, then it is specified in partnership act. Partners have many rights in a partnership enterprise which are mentioned below.

  1. Every partner has the right to indulge in day to day business affairs and has an effective control over the management.

  2. Every partner should have mutual trust and understanding for smoother functioning of an enterprise.

  3. Each partner can voice their opinion by contributing each one’s ideas in to business activities.

  4. Partners have the right to inspect and access the book of accounts of the company and check for any maladjustment.

  5. Profits are equally distributed among the partners and have to bear the losses when incurred.

  6. Partners are not eligible to get remuneration for taking part in the business affairs.

  7. Partners have the right to get interest on the capital and advances that they have invested in the business.

  8. They have the right to continue or cease to become a partner.

  9. Partners have the right to prevent other new partner’s entry in to the business.

  10. Partners have the right to use the partnership property only for the business and not for personal use.

  11. Right to retire can be availed if necessary by consultation of the partners.

  12. Partners must indemnify the firm for loss if any fraudulence is taken in the conduct of the business.

  13. Partners should not make any personal profits from partnership transactions.

  14. Partners are not eligible to carry on other firms affairs.

  15. Every partner has to abide the law and act accordingly.

  16. All the partners are jointly liable for each and every business affairs.

  17. It is duty of the partners as not to assign their interest to outsider without the consent of other partners.

  18. There is a liability of the firm for wrongful act of a partner, improper utilization of funds and for retiring partner if he wishes to quit before his retirement.

  19. It is the partner’s duty to give information to other partners in all matters of the firm.

  20. The partners should owe a duty of loyalty and should not maintain any secrecy with other partners.

 

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