Partnership firm is formed by more than one individual for the purpose of carrying on a business.
The partners have some rights and the following are the rights of the partners: 1.Every partner has a right to take part in the management of the business; 2.Every partner has a right to be consulted about the affairs of the partnership business; 3.Every partner has right to inspect the books of accounts and have a copy of the same; 4.Every partner has a right to share the profits (or losses) with others in the agreed ratio; 5.If a partner has contributed a sum in excess of the agreed capital, he has a right to receive interest on such excess at an agreed rate of interest. In case the rate of interest is not agreed, he may be paid interest at certain percentage; 6.In case of an emergency, a partner has the right to act according to his best judgment and be indemnified for the expenses incurred by him; 7.A partner has the right not to allow the admission of a new partner; 8.On giving a proper notice, a partner has the right to retire from the firm; 9.If a partner incurs expense on the business or he pays some money on behalf of the firm, that partner may get indemnified of these payments from the firm.
Duties and obligations of partners:
Along with the above rights, a partner also has some duties towards partnership and they are: •To devote time and attention to the business of the partnership; •To carry on the business diligently and with the greatest common advantage; •Not to engage in competition against the firm and if he does so, he must account for the profits made in the operation of the business; •To hold and use the property of the...