Partners have the right to share equally all profits made in the company. Similarly, the losses incurred by the partnership company contribute to this. The amount of a partner`s participation must be determined by whether there is an agreement between the partners on that behalf. If there is no agreement, one can assume that the share of the profits is the same and that the weight of evidence that the shares are uneven is on the party claiming the same thing. 5. The sale of profits, including the report in which profits must be shared between partners. No partner in the company is entitled to compensation associated with its share of the company`s profits by participating in the company`s activities. Although this rule can always vary by an explicit agreement or a transaction, the partner is entitled to compensation. Thus, even in the absence of a contract, a partner may demand compensation if that remuneration is to be paid under the subsequent use of the company.
More simply, if it is customary to pay a partner compensation for the company`s business, the partner can claim it even if there is no payment contract for the company. A person who has been admitted as a partner in an existing partnership is responsible for all the obligations of the company that were contracted before being admitted as a partner. This type of claim can only be satisfied by property related to the company and would not extend to the individual ownership of a newly approved partner. However, this section is also subject to a contract between the partners. As such, partners can, under a contract, allow any partner to do business, whether it is competition or not. Similarly, it is open to them to prevent any partner from carrying out transactions other than that of the company while it is a partner, and such an agreement should not be considered to be restricting, as stipulated in Article 11, paragraph 2, of the Indian Partnerships Act. Candor is particularly important for business sales or potential conflicts of interest. Partners should always have full and complete disclosure of the sale of the partnership.
In our case, the king/doctor/partner qualified in the company documents as a “managing partner.” A managing partner`s commitments to its partners are even more important and they owe their partners the highest possible loyalty obligation. Several courts have ruled that managing partners owe their partners the highest statutory trust obligation. A managing partner has a duty to manage partnership business exclusively for the benefit of the partnership and should not find himself in a situation where it is useful to go after that duty. Another part of the duty of loyalty is to retain the property in a fiduciary partnership and not to use it to obtain a personal benefit.