MANAGEMENT AND OPERATION OF A GENERAL PARTNERSHIP

Question 1

Voting

Answer 1

Unless otherwise agreed, all partners have equal rights in the management of the business and equal votes (that is, one partner, one vote). Decisions regarding matters within the ordinary course of the partnership business require a majority vote of the partners. Matters outside of the ordinary course of business require the unanimous consent of all partner

Question 2

Partners’ Accounts

Answer 2

Each partner is deemed to have an account that is credited with an amount equal to the partner’s contribution plus his share of any profits and debited with the partner’s share of any losses and partnership liabilities. Where a partner personally profits at the expense of the partnership, the partner must account to the partnership for those profits. Upon dissolution, a partner is entitled to settlement of their account.

Question 3

Books and Information

Answer 3

Books and information must be kept at the partnership’s chief executive
office. Each partner has a right to inspect and copy the partnership books. Upon demand, each partner must render true and full information of all things affecting the partnership.

Question 4

Legal Actions By and Against Partners

Answer 4

A partnership may sue or be sued in its own name; however, to reach a partner’s personal assets, there must be a judgment against the individual partner. A partnership may sue a partner for breach of the partnership agreement or of a duty owed to the partnership. A partner may sue the partnership or other partners to enforce a right created by partnership act or agreement, or a right otherwise
belonging to the partner.