Rights of Partners:
According to Partnership Act 1932 , the rights of the partners shall be the following:
- Right to take part in management:
Every partner has the right to take part in the management and conduct of the business of the firm.
2. Right to express opinion:
Every partner has right to express his views on matters relating to partnership business. Decisions on ordinary matters can be taken by majority votes. But no major business decision can be taken without the unanimous will of all the partners.
3. Right to inspect and to take out copies:
Every partner has access to the books of accounts of the firm. He can inspect them and even take out copies of the same.
4. Right to share profit:
In absence of any agreement, all the partners have an equal share in the profits of the firm. If agreement specifies the manner in which profit is to be distributed, the distribution shall be made in that manner.
5. Right to be indemnified:
Every partner has the right to be indemnified by the firm in respect of expenses incurred and losses sustained by him in the ordinary and proper conduct of the business of the firm.
6. Right to have a joint share in the property of the firm:
Every partner has the right to share the proceeds of any property held by the firm equally.
7. Right to retirement:
Every partner has the right to retire from the firm but with the consent of all the other partners.
8. Right to prevent introduction of a new partner:
Every partner has the right to prevent the admission of a new partner in the firm.
9. Right to dissolve:
A partner has the right to dissolve the partnership with the consent of all partners except when the partnership is at will. In this case, the firm may be dissolved by any partner giving the notice in writing to all other partners.
10. Right in emergency:
A partner has authority in an emergency to do all such acts for the purpose of protecting the firm form loss as would be done by a person of ordinary prudence in his own case under similar citcumstances.His such acts will bind the firm.