Running Distribution Business in Partnership – What are the rights of the partners?

Congratulations to you, if you have successfully launched a distribution business in partnership! You have stepped into one of the most profitable businesses of the time. If you have taken a good start, it does not mean that things would go smooth between you and your partners afterwards. In order to run your distribution business smoothly in partnership without any disputes, you must pen down a partnership deed defining all the rights, duties and liabilities of the partners in a business. rnIf distributors as partners don’t feel the need of writing and registering their partnership deed, they must examine their rights in the Partnership Act of the state where they operate. Some general rights of the partners who join hands and decide to run a distribution business venture mutually are described below.rnRights of the Partners!rn1. Every partner has the right to take part in the management or the operations of the business unless no agreement about business management exits.rn2. Every partner has the right to take part in the important decisions of the business. He has the full right to be heard regarding any matter about the business under discussion. In case there is a difference of opinion among the partners, the final decision is the decision of the majority. rn3. Unless different proportions are set, every partner has the right to share the profits of the wholesale business equally. The amount of capital invested and the responsibility of work does not affect the rate of profits. rn4. If allowed in the agreement, any partner can be entitled to an interest on capital out of the profits of the company. If the agreement does not exist, no partner can be ever entitled to interest on capital.rn5. All the partners have the right to examine and inspect the records, accounts and the books of the company. Even the dormant partner not taking part in the management of the company also has enjoys right. Minor partner (under 18 years of age) can also review and examine the accounts, can copy them but cannot access the books. rn6. If any partner has contributed more money than the share of his/her capital for business purposes, he/she is entitled to get an interest on this extra money. This interest on advances is paid according to the agreed ratio between the partners and is normally charged as a business expense. If the interest rate is not agreed in advance, normally 6% interest rate applies. rn7. In the course of the distribution business, if any partner makes payments prudently for partnership liabilities, debts, expenses and disbursements made in an emergency, he/she is entitled to be indemnified by the partnership firm.rn8. All the distributors as partners have the right to protect business from loss in case of emergency but in doing so, they must act prudently just like in similar circumstances, they would act in their own affairs. rn9. Every partner has the right to prevent the admission of a new partner without his/her consent and no partner is liable for the firms’ obligations of the times before he/she became the partner.rn10. If partnership of the business is at will, every partner has a right to retire anytime by giving prior notice to the rest of the partners. rn11. Unless a partner is restrained from doing so within an agreed period of time, every partner has a right to carry on his/her personal distribution business provided that he/she does not use the firm name and does not snatch the firm’s customers. rn12. Every partner has the right to have an equal share in the property of the Wholesale Business as otherwise stipulated in the contract. Every partner is the joint owner of the partnership property which is exclusively used for the business purposes.