RELATIONS OF PARTNERS TO ONE ANOTHER

1) Rights and duties of partners

Section 21: partners can change their mutual rights and obligation as established by
agreement or this Act with the approval of all partners. This consent can be expressed or
implied by their actions.
3 things under this section:
i) Partners boleh tentukan their rights and obligations by mutual agreement. All partners
must agree on any changes to these rights and obligations.
ii) Eventho pa provides the mutual rights and duties of partner, they may be varied by
agreement between the partners.
iii) Perjanjian untuk pelbagaikan mutual rights and duties may be either express or
implied via course of trading.
Kalau agreement dibuat dalam writing, any variation to the agreement is best be done in
writing.
Section 26: provides for the rights and duties of partners in the partnership property.
(a)semua partner berhak untuk Kongsi equally in capital and profits of the business and must
contribute equally towards the losses whether capital or otherwise.
(b)firm must identify every partner in respect of payments made and personal liabilities
incurred by him. The firm shall cover all partners for payments and personal obligations
incurred during normal business operations or for preserving the firm’s property.
(c)Partners who make payments or advances their agreed-upon capital are entitled for 8%
interest per year from the date of the payment or advance.
(d)no partner is entitled to interest on the capital bfr the ascertainment of profits.
(e) every partner may take part in the management of the partnership business.
(f) no partner is entitled to remuneration for acting in the partnership business
(g) no one boleh diperkenalkan sbg partners tanpa consent semua partner
(h)a major of partners boleh decide on routine business affairs but changes to the character of
the partnership must be approved by all partners.
(i)the partnership books perlu disimpan di primary place of business or the main location if
there are multiple places. Semua partner ada hak untuk access, inspect and copy the books
anytime.
Case: Vasu Devan v VA Nair