CHAPTER 12 Flashcards
(1 cards)
Rights of partner
Rights of Partners:
1. Right to take part in the conduct of the business:
2. Right to be consulted: (decision on majority basis)
3. Right of access to books of accounts: (+ copy)
4. Right to share profits equally: (unless different agreed)
5. Right to receive interest on capital: (if agreed and firm
earns profit)
6. Right to receive interest on advance: (@6% or as
agreed)
7. Right to be indemnified:
8. Right to retire: (+ public notice)
9. Right of outgoing partner: (6% Interest or Share of
Profit until settled)
10. Variation in Partnership: (with consent of all partners)
*to change nature of business
*to change constitution of partnership
*to change profit and loss sharing ratios
11. Rights of partners after a change in firm: (mutual
rights same as before)
