10 Rights of Partners of a Partnership Firm

The word ‘Partnership’ in the layman sense implies an agreement between two people to work together or jointly. In accountancy, the meaning of partnership is similar to that in the general sense but with a greater depth. In our context, partnership implies the agreement between two or more people who have decided to carry out a business jointly. The main motive to form a partnership is to earn profit arising out of the business activities. Following are the Rights of Partners of a Partnership Firm

Rights of Partners of a Partnership Firm

  1. Every partner has a right to share profits or losses of the firm equally or in the ratio as agreed among them.
  2. Every partner has a right to receive interest on loan and advances provided to the firm at the rate of 6% p.a. if the rate is not agreed among the partners.
  3. Every partner has a right to participate in the conduct or management of the business.
  4. Every partner has a right to access, inspect and copy the books of accounts and records of the firm.
  5. Every partner has a right to voice his/her opinion on the matters relating to the business.
  6. Every partner has a right to be indemnified for all the expenses and liabilities incurred by him/her on behalf of the business.
  7. Every partner has a right to use the property of the firm exclusively for the partnership business and not for personal use.
  8. A partner has a right to restrict the admission of a new partner or prevent the expulsion of existing partner from the firm.
  9. A partner has a right to retire from the firm after giving a proper notice or with the consent of all other co-partners.
  10. In case of emergency, a partner has a right to act on behalf of the firm in order to prevent it from the losses and posses a right to claim indemnity for the payments made by him/her for such act.

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