What are the rights of a partner?

The Rights of a partner are as under:

(i)      To take active part in the business – Every partner has a right to take active part in the conduct and management of the business of the firm.

(ii)     To share Profits – Every partner has a right to share profits earned and are liable to contribute to the losses incurred by the firm.

(iii)  To be consulted – Every partner has a right to be consulted in all matters affecting the business of the partnership firm before any decision is been taken. In case of difference of opinion it may be settled by decision of majority of the partners.

(iv)  To have access to the accounts – Every partner has a right to have access, inspect and copy the books of accounts of the firm.

(v)     To be indemnified – Every partner has a right to be indemnified for the expenses incurred or payments made in the ordinary course of business.

(vi)  To use the property of the firm – Every partner has a right to use the property of the firm for the purposes of the business of the firm. If the partner uses the firms property of the private purpose then he is liable to compensate the firm for the same.

(vii) Interest on capital – Every partner has a right to receive interest on capital at a certain rate as may be specified and agreed in the partnership agreement. Such interest is payable only out of profits, in any, earned by the firm.

(viii) Interest on loan – Every partner has a right to receive interest on loan at the rate of 6% p.a. on any loans or advance payments made by him beyond the capital. Such interest is payable not only out of the profits but also from the assets of the firm.

(ix)  To act as agent of the firm – Every partner has a right to act as the agent of the firm and to bind the firm and other partners for acts done by him in ordinary course of business.

(x)     To retire – A partner has a right to retire (a) with the consent of all the other partners, or (b) in accordance with the  express agreement between the partners or (c) in case of Partnership-at-will by

giving notice to all the other partners of his intention to retire.