Partners of a firm have certain rights over their business. These rights bring them many benefits. The rights are as follows:
Right to share profit; every partner has a right to share profit according to his share. At the time of agreement as certain profit sharing ratio is worked out. Share and profit may be based on the ratio of capital investment or any other criterion. Whatever the ratio worked out solely depends on the agreement among the partners. As for minor partner he also has the right to share a certain ratio in profit. However, he cannot bring a suit against the firm for getting his profit as long as he is the partner of the firm.
To participate in management; partners possess the right to participate in management irrespective of their capital investment or profit sharing ratio. This rate is decided at the time of the agreement. If the agreement is silent, than the right will be exercised on the partnership act.
Interest on capital; interest on capital to partners is allowed only when the agreement permits. In such case, interest is deducted from the profit. However, if the firm does not earn profit even then the interest is paid to the partners.
Right of access to accounting and other records; whether a partner is active or dormant, he has the right to access to accounting and other records. If a partner is unfamiliar with them he may appoint an attorney provided, the other partners have no objection. Partnership act allows partners to demand a copy of them.
A minor partner has an access to accounting and other records only through their attorneys. However he can get the copy e only of accounts and not other documents.
Right to retire emergency powers; every partner has the right to retire from the partnership. In such a case he has to inform all the partners. Each partner can take in an emergency, such measures as necessary for safeguarding the interest of other partners and the field. Such measures, however, must have a support of other partners.
Free from any liability before joining; a partner is not liable for any dues or commitments before his joining the firm. Such dues and commitments are the responsibility of the old partners who were already there in the firm.
Right to share in profit and assets after separation; after his separation from the (example: retirement, death, insanity etc), the partner or his heir has the right to take back his capital and profit.
No new partner to be admitted; no partner has the right to admit a new one without the prayer consent of the other partners. It can be only done when the partnership deed makes provision for it.
