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Sunday, April 14

Rights & duties of the partners in relation to the conduct of business


As per section 12 of the Indian Partnership Act, 1932, followings are the rights and duties of the partners in relation to the conduct of the business of the firm:
Right to take part in the conduct of the business
Every partner has a right to take part in the conduct of the business. [12(a)]
Partner to attend diligently to his duties
Every partner is bound to attend diligently to his duties in the conduct of the business. [12(b)]
Decision by majority
Any difference arising as to ordinary matters connected with the business to be decided by a majority of the partners. [12(c)]
Right to express his opinion
Every partner to have the right to express his opinion before the matter is decided. [12(c)]
Consent of all partners require for change in the nature of business
No change can be made in the nature of the business without the consent of all the partners. [12(c)]
Right to access to and inspect and to the copy of the books of the firm
Every partner has a right to have access to and to inspect and copy any of the books of the firm. [12(d)]
Legal heirs or representative or authorised agent’s right to access to and inspect and to the copy of the books of the firm in the event of death of partner
In the event of the death of a partner, his heirs or legal representatives or their duly authorised agents shall have a right of access to and to inspect and copy any of the books of the firm.


The above is however subject to a contract between the partners. There can an agreement contrary to the above. 



See section 12 of the Indian Partnership Act, 1932 on lawzonline.com