Source: 6)b)4m,June20234 Marks
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Question Scenario

What are the rights of partners with respect to conduct of the business of a firm as prescribed under the Indian Partnership Act, 1932?

Estimated Writing Time: 7 mins Try in Practice Mode

Suggested Answer

Conduct of the Business (Section 12 of the Indian Partnership Act, 1932): Subject to contract between the partners- a) every partner has a right to take part in the conduct of the business; b) every partner is bound to attend diligently to his duties in the conduct of the business; c) any difference arising as to ordinary matters connected with the business may be decided by majority of the partners, and every partner shall have the right to express his opinion before the matter is decided, but no change may be made in the nature of the business without the consent of all partners; and d) every partner has a right to have access to and to inspect and copy any of the books of the firm. e) in the event of the death of a partner, his heirs or legal representatives or their duly authorised agents shall have a right of access to and to inspect and copy any of the books of the firm.

Exam Strategy Tip

When answering law questions in the CA Foundation exam, follow the "Provision -> Facts -> Conclusion" structure for maximum marks. Ensure to state the relevant sections where applicable to earn bonus marks from the evaluator.

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