Duties of Partners:
The following are the main duties of the partners:
- Diligent and honest:
Every partner must act diligently and honestly in the discharge of his duties.
2. Just and faithful:
Every partner must act in a just and faithful manner towards the other partners.
3. To render account and information:
Every partner is bound to render the firm true accounts and full information of all things affecting the firm, any partner or his legal representative.
4. To indemnify the firm:
Every partner is bound to indemnity the firm for any loss caused to it by his willful neglect or frauds in the conduct of the business of the firm.
5. Not to make any secret profits:
A partner should not make any secret profits. If he does so, he will have to surrender to the firm all the secret profits earned by him.
6. Not to hold and use property of the firm:
Every partner is bound to hold and use the property of the firm exclusively for the purpose of the business.
7. Not to start business in competition with the firm:
A partner should not start any other business in competition with the business of the partnership firm.
8. Not to transfer interest:
A partner cannot transfer his interest in the business of the firm to any third party without the consent of all the other partners.
9. To act within the scope of the authority:
Every partner must act within the scope of the authority entrusted to him and should not go beyond the limit specified.
10. To share losses:
If there is no agreement to the contrary, all the partners shall contribute equally to the losses sustained by the firm.