Certain rights have given to the partners. All the activities and functions should be performed best.The following are the rights of partners which are explained :
Rights of Partners
- Rights to manage
Every partner of the partnership firm has an equal right to take part in the management of the firm. Besides this, each has right to attend in planning, implementation, and control activities of the partnership enterprise.
- Right to express views and ideas
Every partner has right to express his opinion, view and ideas to the partners for the benefit of the business. Such opinions may be agreed or refused by other partners it will be discussed and decided with the will of all the partners.
- Right to inspect books account
Every partner has a right to inspect , inquire, and statement of the firm. They can also obtain copies of account and verify incomes, assets, and liabilities of the firm.
- Right to share profit
Each partner has a right to share the profit of the firm and also have bear the loss of the firm. According to the partnership agreement, the amount of profit is shared among the partners on the basis of the ratio of investment.
- Right to get compensation
All partners are authorized to get compensation for the loss and expenses paid made by him on behalf of the firm. For the benefit of the firm, a partner should be indemnified for the loss suffered due to the use of persona assets.
Right to get interest
Every partner has right to get interest advances made by him to the firm. According to the partnership deed, he can get interest on his capital from the profit earned in the firm.
- Right to use properties
Every partner has right to use the properties of the firm for the betterment , growth, and activities of the firm. It is denied to use the property for the personal rights.
- Right to ownership
Every partner has right on the property of the business firm. All the partners have the joint ownership of the property so, one partner only can't sell the firm without the consent of all the partners.
- Right to get retirement
Every partner has a right to leave the firm with the consent of al the partners. In the case of partnership-at-will, the partner can leave the firm by leaving the notice to other partners.
- Right to dissolve:
A partner can purpose the dissolve of business if he does not see any future prospect. Even, if other partners refuse then also he can dissolve the partnership by informing other partners.
Duties of partner
- To work properly
Every partner has to perform his work honestly for the benefit of the business. It is most important that he should show honesty and loyalty in work and other partners.
- To share loss
It is the duty of every partner to bear the loss of the firm as per the agreed ratio. If there is no agreement then the losses should be bear by all the partners equally.
- Not to transfer interest
None of the partners are allowed to transfer the interest or shares to the others without the agreement of other partners.
- To act within the scope of authority
It is the duty of every partner to act within activities of the firm within the scope of the authority entrusted to him. No partner is allowed to work beyond his/her authority. He cannot make any decisions without crossing the boundary of the authority entrusted.
- Not to demand remuneration
If there is not mentioned in partnership deed not to demand remuneration, then it is duty of every partner to work in the firm without charging and expecting the remuneration.
- To indemnify
All partners are authorized to get compensation for the loss and expenses due to irregularity, negligence, and carelessness made personally by partners.
- Not to run competitive business
A partner should not make secret business competing the firm. Similarly, he has to compensate for the loss suffered by the firm is such competing business was taken place.