Rules Applicable in the Absence of an AgreementUnder the Partnership Act, 1932 the following rules will be applicable in the absence of an agreement among the partners:
- Profit or losses of the firm will be shared equally by the partners.(section 13)
- Interest on capital will not be allowed to any partner. If agreed, the interest will be allowed only out of profits of the firm, i.e., it would be an appropriation of profit payable only if, profit warrants. It is chargeable only to the extent of the available profit. In case of losses no interest will be allowed. Similarly no interest will be charged on drawing of the partners unless agreed upon.(Section 13)
- If a partner has given a loan to the firm besides his share of capital, he will be allowed 6% interest on such loan.(Section 13)
- No salary or remuneration will be allowed to any of the partners. In case salary is payable to the partner or partners it would be an appropriation of profit i.e. it would be payable only if there is a profit.(Section 13)
- Every partner must take part in the management of the partnership business.
- No partner can be admitted without the consent of all existing partners.
- The partnership books are kept at the place of business of the partnership and every partner may have access to and inspect and copy any of them.