1. Right to Share Profits
Every partner is entitled to have equal share in the profits of the firm. At the same time, the partners are equally liable to all the losses sustained by the firm unless otherwise agreed upon as per the partnership agreement.
2.Right to have Access to Books
Every partner in a business partnership can access and inspect any of the books of the firm as per law. It can be exercised either by the partner himself or by his authorized agent.
3.Right to Interest on Capital
Ordinarily, no interest is payable to the partners. However, if it is allowed by an express or implied agreement or by the custom of trade, a partner can charge interest on capital. In such a case also, interest shall be paid only out of profits.
Right to Interest on Advance
A partner who contributes additional advance to the firm apart from the amount of his capital for the purpose of business is entitled to get there on an interest at the rate of 6% per annum.
5.Power in an Emergency
As per the Indian Partnership Act, a partner is vested with the powers to initiate action to safeguard the firm from loss.
6. Right to Retire
- With the consent of all the partners, or
- As per the agreement between the partners, or
- In case of partnership- at-will, by giving prior notice to the other partners regarding the intention of his retirement.
7. Right to be Indemnified
- Expenses incurred in the ordinary course of business, and
- Expenses incurred in an emergency.
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