PARTNERSHIP ACT 1895 - SECT 34
PARTNERSHIP ACT 1895 - SECT 34
34 . Rules as to interests, rights and duties of partners
(1A) The interests 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 rules set out in subsections (1) to (9).
(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 6% 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, and shall attend
diligently to the partnership business, and shall not be entitled to any
remuneration for acting in the partnership business.
(6) No person may be
introduced as a partner, without the consent of all existing partners.
(7) Any difference
arising as to matters connected with the ordinary course of the partnership
business may be decided by a majority of the partners.
(7A) A decision for
the purposes of subsection (7) must be arrived at in good faith for the
interest of the firm as a whole, and every partner must have an opportunity of
being heard in the matter.
(7B) Subsection (7A)
extends to powers conferred by a majority of the partners by express
agreement.
(8) 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 inspect and copy any of them.
(9) No change may be
made in the conduct or regulation of the partnership affairs without the
consent or authority of a majority of the partners, and no change may be made
in the nature of the partnership business, or the place where it is carried
on, without the consent of all existing partners.
[Section 34 amended: No. 19 of 2010 s. 51.]