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Rights of Partner under Indian partnership Act


Rights of Partner
Rights of Partner

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Rights of a Partner


Unless provided otherwise in the contract among the partners of the firm (contained in the partnership agreement or otherwise), each partner of the firm is entitled to the following rights:

 
 
  1. Right to participate in the conduct of the business of the firm [Section 12 (a)].

  2. Right to share equally in the profits of the firm [Section 12 (b)].

  3. Right to express opinions on any matter. However, in cases of differences regarding ordinary matters of the firm’s business, decisions of the majority prevail, requiring agreement from all partners.

  4. Right to unanimity for any change in the nature of the business of the firm [Section 12 (c)].

  5. Right to access, inspect, and copy from any of the firm's books [Section 12 (d)].

  6. Right to joint ownership of the firm's property, including property, rights, interests, and goodwill acquired or brought into the firm.

  7. Right to take necessary actions in emergencies to protect the firm from loss.

  8. Right to claim interest at 6% per annum on amounts advanced to the firm beyond the agreed-upon capital [Section 13 (c)].

  9. Right to indemnification by the firm for liabilities incurred in the ordinary course of business [Section 13 (e)].

  10. Right not to be expelled unless power to expel is conferred upon the partners and exercised in good faith by a majority [Section 31 (1)].

  11. Right to resist the introduction of a new partner without unanimous consent [Section 31 (1)].

  12. Right to retire with consent of all remaining partners, in accordance with an express agreement, or by giving notice in writing in a partnership-at-will [Section 32 (1)].

  13. Right to carry on a competing business after retirement, with restrictions on using the firm's name, soliciting its customers, or representing as still in business [Section 36 (1)].

  14. Right as an outgoing partner to share subsequent profits of the firm under certain circumstances [Section 37].

 
 

Express and Implied Authority of a Partner


A partner's authority may be express or implied. Express authority is defined in the partnership agreement, while implied authority is presumed by law unless expressly restricted. Sections 19 and 22 stipulate implied authority.



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