Determining partners and mutual relations

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Determining partners and mutual relations

Unread postby Admin » Thu Jan 24, 2013 2:06 pm

Rule determining partners' mutual relations, where no contract to contrary:
In the absence of any contract to the contrary the relations of partners to each other are determined by the following rules:-
(1) all partners are joint owners of all property originally brought into the partnership stock, or bought with money belonging to the partnership, or acquired for the purposes of the partnership business. All such property is called partnership property. The share of each partner in the partnership property is the value of his original contribution, increased or diminished by his share of profits or loss;
(2) all partners are entitled to share equally in the profits of the partnership business, and must contribute equally towards the losses sustained by the partnership;
(3) each partner has a right to take part in the management of the partnership business;
(4) each partner is bound to attend diligently to the business of the partnership, and is not entitled to any remuneration for acting in such business;
(5) when differences arise as to ordinary matters connected with the partnership business, the decision shall be according to the opinion of the majority of the partners; but no change in the nature of the business of the partnership can be made, except with the consent of all the partners;
(6) no person can introduce a new partner into a firm without the consent of all the partners;
(7) if from any cause whatsoever any member of a partnership ceases to be so, the partnership is dissolved as between all the other members;
(8) unless the partnership has been entered into for a fixed term, any partner may retire from it at any time;
(9) where a partnership has been entered into for a fixed term, no partner can, during such term, retire except with the consent of all the partners, nor can he be expelled by his partners for any cause whatever, except by order of Court;
(10) partnerships, whether entered into for a fixed term or not, are dissolved by the death of any partner.
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