Rights of a Partner: Subject to a contract between partners, the following are the main rights of a partner of a partnership enterprise.

1. Right to take part in management: Every partner has the right to take part in the management and conduct of day to day affairs of the business of the partnership enterprise. 2. Right to express opinion: Every partner has right to express his opinion on the matters relating to business of the partnership enterprise. Ordinary matters during the course of business are decided by majority votes, but major business decision of the business are taken unanimously by all the partners. 3. Right to take out copies and inspect the books of account: Every partner has a right to inspect the books of accounts of the partnership enterprise and further take out the copies of the same. 4. Right to share profits: In the absence of any contract to the contrary, every partner has an equal share in the profits of the partnership enterprise. Otherwise, they have to share the profit and loss as per the agreed ratio stated in the partnership deed. 5. Right to have interest on capital: In the absence of any agreement, express or implied, a partner is not entitled to get any interest on capital contributed by him. It may be further pointed out here that a partner is entitled to interest (subject to the agreement to the contrary) only out of profits earned by a firm. If a firm incurs losses, on interest on capital can be claimed by a partner.

6. Right to have interest on advances: Every partner in the partnership enterprise is entitled to get interest on any advances made by him over and above his capital @ 6% per annum. A partner is not entitled to receive interest on advances made by him after the dissolution of the partnership enterprise, unless there is an express or implied agreement to that effect. 7. Right to be indemnified. Every partner has the right to be indemnified by the firm in respect of any losses suffered and expenses incurred by him in the conduct of the business of the firm. 8. Right to have joint share in the partnership property: The property of the firm belongs to all the partners and can be used for the common benefit of all the partners. Partnership property may be used by a partner for his personal benefit only subject to express contract between the partners. 9. Right in emergency: A partner has the right to protect the firm loss in any emergency by undertaking any act as would be deemed fit and have done by a person of ordinary produce in his own case under similar circumstances. Such acts of the partner shall be binding on the firm. 10. Right of preventing the entry of new partner: Every partner has the right to prevent the induction of a new partner in the firm with out the consent of all the partners. It may be pointed out here that the partnership deed or Agreement may contain a provision allowing one of the partners to introduce a new partner. 11. Right to having no liability before joining the partnership firm:

A partner is not liable for any of the liabilities of the firm before he has joined the firm. Simply stated, a new partner joining the firm cant be held responsible for the earlier acts of the old partners. 12. Right to retirement: Every partner has the righty to retire from the firm with the consent of all other partners or in accordance with an express agreement among the partners, or by giving a notice in writing to all other partners. 13. Right to dissolve: Every partner has the right to dissolve the partnership firm with the consent of all other partners except when the partnership is at will. In that case dissolution of firm takes place after giving notice by any partner in writing to all other partners. 14. Right to have profits after retirement or death: After retirement every partner and his legal heirs (in case of his death) had the right to share the profits or to have 6% interest as per choice unless the balance due to the partner is paid off. 15. Right to carry on competitive business: A retiring partner has a right to carry on compatible business i.e. a business similar to the firms business, but in the absence of contract to the contrary he cant use the firms name in which he was originally a partner and represent himself as carrying on the business of the partnership enterprise.

2. Duties of a Partner: The duties of a partner are as follows: i. To carry on the business to the greatest common advantage: Every partner is bound to carry on the business of the firm to the greatest common advantage. In other words, the partner must use his knowledge and skill in the conduct of business to secure maximum benefits for the firm. ii. To be just and faithful to each other: Every partner must be just and faithful to other partners of the firm. Every partner must observe utmost good faith and fairness towards other partners in business activity. iii. To render true accounts: Every partner must render true and proper accounts I his co-partners. Each and every entry in the books must be supported by vouchers and the explanations if demanded by other partners. iv. To provide full information: Every partner must provide full information of activities affecting the firm to the other co-partners. No information should be concealed, kept secret. v. To attend diligently to his duties: Every partner is bound to attend diligently to duties in the conduct of the business of the firm. vi. To work without remuneration: A partner is not entitled to receive any kind remuneration for taking part in the conduct of the business. But in practice, the working partners are generally paid remuneration as per agreement, so also commission in some case. vii. To indemnify for loss caused by fraud or willful neglect:

If any loss is caused to the firm because of a partner's willful neglect in the conduct of the business or fraud commit by him against a third party then such partner must indemnify the firm for the loss. viii. To hold and use partnership property exclusively for the firm: The partners must hold and use the partnership property exclusively for the purpose of business of the firm not for their personal benefit. ix. To account for personal profits: If a partner derives any personal profit from partnership transactions or from the use of the property of the firm or business connection the firm or the firm's name, he must account for such profit and pay it to the firm. x. Not to carry on any competing business: A partner must not carry on competing business to that of the firm. If he carries on and earns any profit then he must account for the profit made and pay it to the firm. xi. To share losses: It is the duty of the partners to bear the losses of the firm. ' partners share the losses equally when there is no agreement or as per their profit share ratio. xii. To act within authority: Every partner is bound to act within the scope of authority. If he exceeds his authority and the firm suffers from any loss, he shall have compensate the firm for such loss. xiii. Duty to be liable jointly and severally: Every partner is jointly and individual liable to the third parties for all acts of the firm done while he is a partner. xiv. Duty not to assign his interest: A partner cannot assign or transfer his partner interest to an outsider so as to make him the partner of the firm without the consent of other partners. However, he can

assign his share of the profit and his share in the assets the firm where the assignee shall not be entitled to interfere in the conduct of the business Reconstitution of partnership(1) Admission of a New Partner According to the Partnership Act, no new partner can be taken in a firm without the consent of all the existing partners. The new partner when admitted is called incoming partner. An incoming partner is not liable for any act of the firm done before he became a partner. 2. According to Section 31 of the Partnership Act, subject to contract between the partners and to the provision of Section 30, no person shall be introduced as a partner into a firm without the consent of all the existing partners. 3. Subject to provision of Section 30, a person who is introduced as a partner into a firm does not thereby become liable for any act of the firm done before he became a partner. (2) Retirement of a Partner According to Section 32 of Partnership Act, a partner may retire or withdraw from a firm-(1) (a) with the consent of all the other partners. (b) In accordance with an express agreement by the partners or (c) Where the partnership is at will, by giving notice in writing to all the other partners of his intention to retire. (2) An outgoing partner continues to be liable for the debts of the firm before his retirement until he gives a public notice of his retirement. (3) Insolvency of a Partner When a partner of the firm is declared bankrupt, he then ceases to be a partner from the date of the order of the Court (adjudication). The insolvency of a partner does not necessarily result in the dissolution of the firm. (4) Death of a Partner If the firm consists of only two partners, the death of one partner shall dissolve the partnership. If there are more than 2 partners, the death may not result in the disso of the firm. The partners may agree to carry on the partnership business.