Rights and Liabilities of the Partners in Partnership
Under Section 13 of the Partnership Act 1932 the Partners have the following rights and liabilities:-
1. A partner is not entitled to receive remuneration for taking part in the conduct of the business.
2. The partners are entitled to share equally in the profits earned and shall contribute equally to the losses sustained by the firm.
3. Where a partner is entitled to interest on the capital subscribed by him such interest shall be payable only out of profits.
4. A partner making for the purpose of the business any payment or advance beyond the amount of capital he has agreed to subscribe is entitled to interest thereon at the rate of six per cent per annum.
5. The firm shall indemnify a partner in respect of payments made and liabilities incurred by him
6. A partner shall indemnify the firm for any loss caused to it by his willful neglect in the conduct of the business of the firm.
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