PARTNERSHIP ACT 1891 - SECT 27
Rules as to interests and duties of partners subject to special agreement
PARTNERSHIP ACT 1891 - SECT 27
Rules as to interests and duties of partners subject to special agreement
27 Rules as to interests and duties of partners subject to special agreement
(1) The interests of partners in the partnership property and their rights and
duties in relation to the partnership must be decided, subject to any
agreement express or implied between the partners, by the following rules—
(a) all the partners are entitled to share equally in the capital and profits
of the business, and must contribute equally towards the losses whether of
capital or otherwise sustained by the firm;
(b) the firm must indemnify every
partner in relation to payments made and personal liabilities incurred by the
partner—
(i) in the ordinary and proper conduct of the business of the firm;
or
(ii) in or about anything necessarily done for the preservation of the
business or property of the firm;
(c) a partner making for the purpose of the
partnership, any actual payment or advance beyond the amount of capital which
the partner has agreed to subscribe, is entitled to interest at the rate of 6%
per annum from the date of the payment or advance;
(d) a partner is not
entitled, before the ascertainment of profits, to interest on the capital
subscribed by the partner;
(e) every partner may take part in the management
of the partnership business;
(f) no partner is entitled to remuneration for
acting in the partnership business;
(g) no person may be introduced as a
partner without the consent of all existing partners;
(h) any difference
arising as to ordinary matters connected with the partnership business may be
decided by a majority of the partners, but no change may be made in the nature
of the partnership business without the consent of all existing partners;
(i)
the partnership books are to be kept at the place of business of the
partnership (or the principal place, if there is more than 1), and every
partner may, if the partner thinks fit, have access to and inspect and copy
any of them.
(2) This section does not apply in relation to an incorporated
limited partnership.
