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What are the duties and rights of the partners?

Curtis Rhodes

in Student Loans

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Kathy Robinson on December 25, 2018

Rights and Duties of the Partners of the Firm Mutual trust and cordiality are the heart of the good functioning of association of the company. The acts of the partner bind the firm and to all the partners of the company with the outside world: Rights of Members 1.The right to participate in the management of the company. 2.Right to be consulted and chance of expression of opinion in the conduct of the company. Decisions are taken on the basis of the votes of the majority. However, for the following acts the decisions must be taken unanimously: (a) Change in the nature of the company. (b) the Change in the place of work. c) in the Case of any particular item if the partnership deed provides that the decision must be taken unanimously. (d) the Admission or expulsion of partner (subject to as provided in the deed). 3.The right to have access to the books of accounts of the company. 4.Right to a share in the profits of the company as per the partnership deed, and if the scripture is silent in this regard, to share profits equally. 5.Entitled to interest on the capital deployed by the company. 6.Right to receive remuneration for conduct of management of the company. 7.Right to receive interest on temporary advances made to the company. 8.Right to be indemnified for all acts performed in an ordinary course of business for the best interests of the company. Obligations of the Partners 1. Absolute Duties the Following are the absolute duties of partners: a) Duty to act in good faith in the conduct of the association. (b) Duty to carry on business in true and commercial prudence for the advantage of all partners. c) Duty to account for true account for other partners. d) Duty to indemnify the company for any loss caused to the company on account of fraud done by a partner to a third party. (e) the Duty to provide true and correct information with respect to transactions of the company to all the other partners of the company. f) All partners of the joint venture and jointly and severally liable for all obligations relating to the company. A creditor of the company may proceed against the company or any partner of the firm to enforce his right. g) No partner can transfer his interest or assign his interest without the permission of the other partners of the firm. 2. Qualified Duties Following are the duties on the part of the partners of the firm, unless any proof to the contrary: (a) Duty to act diligently with care and prudent means in the conduct of the business. (b) Duty to share losses of the business. c) Duty to use company property exclusively for the best interest of the business of the company. d) Duty to indemnify the company for any loss caused to the company on account of willful neglect on the part of the couple. e) do Not account for the secret profits at the expense of the company. f) Not to start any business of competing nature.


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