Important rights as between the partner in the absence of any express contract between then are as follows:
1. Right to take part in the conduct of the business [Sec. 12 (a)]:
Every partner, irrespective of the amount of capital contribution, has an inherent right to take part in the conduct of the business of the firm. Although one may agree not to participate in the management of the business but the right of participation should be available to each partner.
ADVERTISEMENTS:
2. Right to be consulted [Sec. 12 (c)]:
Every partner has a right to be consulted and heard before any matter is decided. Any difference arising as to ordinary matters connected with the business may be decided by a majority of the partners.
But no change may be made in the nature of the business or the constitution of the partnership, e.g., admission of a new partner, without the consent of all the partners. The partnership deed may, however, provide that in all matters consent of all the partners is necessary or that all matters shall be decided by majority opinion.
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ADVERTISEMENTS:
It may be noted that majority powers should be exercised in good faith for the benefit of the firm. If the majority of the partners decide to expel a partner without sufficient cause, the expulsion would be set aside (Blisset vs. Daniel).
3. Right of access to books [Sec. 12 (d)]:
Every partner has a right to have access to and to inspect and copy any of the books of the firm.
4. Right to share the profits [Sec. 13 (b)]:
ADVERTISEMENTS:
Every partner, irrespective of the amount of capital contribution or business expertise, has a right to share equally in the profits earned by the firm.
5. Right to interest on capital [Sec. 13 (c)]:
Where a partner is entitled to interest on capital subscribed by him, such interest shall be payable only out of profits.
6. Right to interest on advances [Sec. 13 (d)]:
Where a partner makes, for the purpose of the business, any payment or advance beyond the amount of capital he has agreed to subscribe, he is entitled to interest thereon at the rate of six per cent per annum.
7. Right to indemnity [Sec. 13 (e)]:
Every partner has a right to claim indemnity from the firm in respect of payments made or liabilities incurred by him:
(a) In the ordinary and proper conduct of the business, and
(b) In doing such act, in an emergency, for the purpose of protecting the firm from loss, as would be done by a person of ordinary prudence, in his own case, under similar circumstances.