There are some specific duties and responsibilities of partners in a partnership firm such as sharing of loss, mutual trust, maintaining secrecy, no claim of remuneration, no transfer of share etc.
The major duties of partners in the partnership firm are as follows:
Partnership is based on mutual trust and confidence among partners. It is the duty of each partner to maintain mutual trust and understanding. Every partner should act honestly in conducting business of the firm. Business should be carried out for mutual advantage.
It is the duty of every partner to share losses as per agreement. Every partner is jointly and personally liable for the debts of the firm.
It is the duty of partner to work without remuneration. However, the partnership deed can provide remuneration for active partners.
Every partner has a duty to maintain correct accounts of business operations. The accounts should give true and fair view of financial position of the firm.
Every partner has a duty to act within authority given by partnership deed. He is liable for losses arising from acts outside his authority.
Every partner has the duty to indemnify losses or damages arising due to his negligence or misconduct.
7. Not to transfer share
It is the duty of every partner not to transfer his share without consent of other partners. It should be based on mutual consent.
Also Read: Types Of Partners
The duty of a partner is not to run similar business which competes with the firm.
It is the duty of every partner not to make secret profit. It can be by way of commission or otherwise.
It is the duty of every partner not to make use of firm's property for personal purposes.
The major duties of partners in the partnership firm are as follows:
1. Mutual trust and confidence
Partnership is based on mutual trust and confidence among partners. It is the duty of each partner to maintain mutual trust and understanding. Every partner should act honestly in conducting business of the firm. Business should be carried out for mutual advantage.
2. Share losses
It is the duty of every partner to share losses as per agreement. Every partner is jointly and personally liable for the debts of the firm.
3. Work without remuneration
It is the duty of partner to work without remuneration. However, the partnership deed can provide remuneration for active partners.
4. Maintain correct accounts
Every partner has a duty to maintain correct accounts of business operations. The accounts should give true and fair view of financial position of the firm.
5. Act within authority
Every partner has a duty to act within authority given by partnership deed. He is liable for losses arising from acts outside his authority.
6. Indemnify for losses
Every partner has the duty to indemnify losses or damages arising due to his negligence or misconduct.
7. Not to transfer share
It is the duty of every partner not to transfer his share without consent of other partners. It should be based on mutual consent.
Also Read: Types Of Partners
8. No engagement in competitive business
The duty of a partner is not to run similar business which competes with the firm.
9. No secret profit
It is the duty of every partner not to make secret profit. It can be by way of commission or otherwise.
10 No personal use of property
It is the duty of every partner not to make use of firm's property for personal purposes.
