RIGHTS
AND DUTIES OF PARTNERS
Rights of
Partners
1. Right of Profit.
2. Right of Opinion.
3. Right of Inspection.
4. Right of management.
5. Right to Exercise Power.
6. Right to Exercise Power.
7. Right of Retirement.
8. Right of Existence.
9. Right of Admission.
10. Right of Interest.
Duties of
Partners.
1. To be Sincere and Faithful.
2. Maintenance of True Accounts.
3. Common Advantage.
4. To keep the secrecy.
5. Use of Firm Property.
6. Provide all information’s.
7. To carry on other business.
8. Profit should be paid to the firm.
9. Compensation for loss.
10. Distribution of loss.
11. Use of powers within limits.
12. To Abide the Decision.
DISTINGUISH
BETWEEN PARTNERSHIP AND HINDU UNDIVIDED FAMILY
1. Mode of creation.
2. Acquisition of Interest.
3. Admission of New Members.
4. Limit over number of Members.
5. Authority of Members.
6. Liability of Members.
7. Right of Members to Demand Account.
8. Right to Dissolution or Partition.
9. Need of Registration.
10. Effect of Death of a Member.
DISSOLUTION
– CONCEPT
Section
39
Dissolution
of a Firm.
Dissolution
of a Partnership.
MODES OF
DISSOLUTION OF A FIRM
MODES OF DISSOLUTION OF A FIRM
By
voluntary acts of Partners themselves By
operation of Law By intervention of a
Court
Compulsory Dissolution On happening of Certain Contingencies
By Consent Insolvency of
all or all By
expiry of term
except one
By Agreement Some
event making By
Completion of undertaking
partnership business Unlawful
By Notice Some event making business By death of partner
unlawful if carried on in
partnership By insolvency of partner
Insanity of Partner
Permanent Incapacity of Partner
Misconduct of Partner Affecting Business
Wilful or persistent Breach of Agreement
Transfer or Sale of Whole Interest of Partner
Business working at a loss
Just and Equitable Ground
CONSEQUENCES
OF DISSOLUTION OF A FIRM
1.
Appointment of Receiver by the Court.
2.
Liabilities of a Partner on Dissolution of a Firm.
a.
Liabilities of Acts done by Partners, done after
dissolution.
b.
Continuing Authority of Partners for purposes of
winding up.
3.
Rights of the partners on Dissolution of a Firm.
a.
Rights of Partners to have Business Wound up.
b.
Continuing authority of the partner for the purpose
of winding up.
c.
To Account for Personal Profits after Dissolution.
d.
Right to restrain from use of Firm name or Firm
Property.
e.
Agreement in restraint of trade.
The creation of partnership deed format is simpler, and no legal formalities are to be followed to establish it. At the same time it doesn't incur a lot of expenses for its creation unlike a corporation. Nonetheless, compared to the sole trader's concern, it may present some difficulties , particularly in selecting and organizing partners, etc.
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