Pakistan study notes for Matric, Intermediate, B.A, B.COM BSC, M.A, BCS. Free Pakistani Urdu educational school, colleges and University notes.

DUTIES OF PARTNERS

DUTIES OF PARTNERS

Partners are required to perform their duties and discharge all obligations.

 

To Act Within Jurisdiction

Each partner is bound to remain within his limit set by agreement or Partnership Act. If he violates this rule and other partners, consequently, suffer he will be liable to compensate for the loss or damage.

 

Not To Transfer His Membership

No partner has the right to transfer his share to another person. A partner, however, may transfer his shares or profit to another without affecting the rights of other partners and the status of the firm. However, the transferor has the right to the firms’ assets and profits and access to the books of accounts after the dissolution of the firm.

 

To Act Honesty

Every partner is required to act fairly and honestly in the conduct of business. He should not act in a way that is injurious to other partners or that brings a bad name to the firm. If the agreement allows the expulsion right, he should act in good faith. He should also make amends for losses caused by his fraud.

 

To Furnish True Accounts

Those partners actively participating are legally hound to furnish true s accounts of the firm. Those who are assigned to work to sell, buy, make payments, receive collectibles and cash should do so honestly and in the best interest of the firm. They must allow the other partner to have an access to the firms books and accounting records. They should not only maintain accounts properly but alt such accounts should be supported by genuine vouchers, bills, and invoices. If necessary, they should justify all their acts, expenses, and transactions.

 

To Work In The Firm’s Interest

It is the responsibility of every partner to act in the best interest of all other partners. He should not violate law, rules, and regulations. He should avoid all those acts that may bring losses or damages to the firm or its goodwill. His all acts are required to be in good faith and not malafide.

 

To Disclose All Information

The structure of the partnership firm stands on mutual cooperation and confidence. Any confidence crisis created in the process of business by misleading, lying or holding back any information may bring irreparable damages and may shake the foundation of the firm. It is the duty of each partner to keep others informed of all matters, no matter how small in significance, strengthening mutual confidence leading to the betterment of the firm. It is not desirable to use obtained information in his personal interest.

 

Use Of Firm’s Asset

For every partner it is legally binding to use assets only in the interest of the firm. Whether it is telephone, computer, photocopier, vehicle, premises, or even merchandise must not be used to satisfy personal needs. All assets must be used for collective interest. Their private use, if any, must be disclosed to other partners.

 

To Be Responsible For Losses

Partners share in profits in accordance with the ratios worked out in the agreement. If the firm incurs losses in the course of business every partners is liable to share losses in proportion to his respective share as agreed upon.

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