Victorian Consolidated Legislation

Partnership Act 1958 - SECT 28

Rules etc. of partners when not subject to special agreement

28. Rules etc. of partners when not subject to special agreement

The interest of partners in the partnership property and their rights and
duties in relation to the partnership shall be determined subject to any
agreement express or implied between the partners by the following rules:

(1) 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.

(2) The firm must indemnify every partner in respect of payments made and
personal liabilities incurred by him-

   (a)  in the ordinary and proper conduct of the business of the firm; or

   (b)  in or about anything necessarily done for the preservation of the
        business or property of the firm.

(3) A partner making for the purpose of the partnership any actual payment or
advance beyond the amount of capital which he has agreed to subscribe is
entitled to interest at the rate of Seven per centum per annum from the date
of the payment or advance.

(4) A partner is not entitled before the ascertainment of profits to interest
on the capital subscribed by him.

(5) Every partner may take part in the management of the partnership business.

(6) No partner shall be entitled to remuneration for acting in the partnership
business.

(7) No person may be introduced as a partner without the consent of all
existing partners.

(8) 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.

(9) The partnership books are to be kept at the place of business of the
partnership (or the principal place if there is more than one) and every
partner may when he thinks fit have access to and inspect and copy any of
them.