Common use of Rights of Partners Clause in Contracts

Rights of Partners. The right of the partners shall be regulated by the provisions of the LLP Act, 2008 and rules made thereunder and the LLP Agreement. Following shall, inter alia, be the rights of the partners: Right to take part in business Every partner of the LLP shall have right to take part in the conduct of business of the LLP. Right to assets on dissolution In the event of any distribution of assets and properties in accordance with the provisions of the LLP Act, 2008 and rules made there under, all the partners shall have the rights, title and interests in all the assets and properties of the LLP. Such rights, titles and interest shall be in the proportion to their respective capital contribution. Right to access and inspect the Statutory records All the partners shall have the right to access, inspect and take copy of all the statutory books, registers, books of accounts or other record maintained by the LLP. Right to share of profit etc All the partners shall have right to receive their share of profits, interest on the money advanced to the LLP as loan and remuneration as admissible to them under the LLP agreement. Right to carry on any other business All the partners including designated partners shall have right to carry on any other business independently of other partners of the LLP. Authorities of Partners Every Partner shall, for the purpose of the business of the LLP, be the agent of the LLP and not of the partners. No partner shall have the authority to bind or obligate the LLP to any extent whatsoever with regard to any matter outside the scope of the objectives of the LLP. No partner shall use the name or brand of the LLP, credit or the property for purposes other than the business of the LLP; No partner shall act in a manner which is detrimental to the interest of the LLP. The liability of the Partners shall be limited as provided in the LLP Act and set forth in this agreement. The LLP shall indemnify and defend its partners and other officers from and against any or all liability(s) in connection with claims, actions and proceedings, regardless of the outcome, loss or settlement thereof, whether civil or criminal, arising out of or resulting from their respective performance as partners and officers of the LLP, except for the gross negligence or wilful misconduct on the part of partners or the officers(s). Duties of the Partners Each partner of the LLP shall be bound to carry on the business of the LLP in a diligent manner to the greatest common advantage, to be just and faithful to each other, and to render true and fair statement of accounts and solvency, and other information relating to the state of affairs of the LLP. Defaulting partner shall indemnify the LLP and other existing partners for any loss caused to it by his fraud/ fraudulent conduct with regard to the business of the LLP. In such a case, the partner/designated partner involved shall carry unlimited liability, at his own risks. If the partner of the LLP derives any profit for him without the consent of the LLP from any transaction concerning the LLP, or from use of the property or business connection of the LLP, or the name of the LLP, he shall account for that profit and pay the same to the LLP. No partner shall engage in any business that is competing with the business of the LLP during his tenure as a partner in the LLP. In case of any existing competing business of any existing partner, the concerned partner shall obtain the consent of other partners for continuing the same. lf a Partner, without the consent of the other Partners of the LLP, carries on such business as mentioned hereinabove he shall be liable to account for and pay over to the LLP the proportion of profits made by him from such competing business. Confidentiality of partnership information Disclosure of a Partners' Confidential Information to any of the officers, employees, consultants or third parties shall be made only if required and to the extent necessary to carry out rights and responsibilities under this Agreement or as required under any law for the time being in force, or by any statutory authority. Further such disclosure shall be limited to the extent consistent with the rights and responsibilities enumerated under this Agreement and shall only be made to persons who are bound to maintain the confidentiality thereof and not to use such confidential information except as expressly permitted by this agreement. Other Duties of Partners No partner shall without the written consent of other partners: Employ any money, goods or any property except in the ordinary course of business of the LLP and in its interest. Stand as surety or provide security to any person. Assign, mortgage or charge any asset or property of the LLP Lend money or give credit on behalf of the LLP. Compromise or compound or release or discharge (except upon payment in full) any debt due to the LLP. Buy, order, contract or procure any property, goods or services for the LLP. Any loss incurred due to breach of the provisions mentioned above shall be made good to the LLP by the responsible partner. BREACH OF COVENANTS: THE CONSEQUENCES A partner shall be deemed to have committed the breach of covenants under this agreement in the following cases: If he does anything which is otherwise forbidden under the agreement; If he omits to do anything or fails to perform any duty which he is liable to do or perform under this agreement; Or If he otherwise materially defaults in the performance of his obligations under this agreement. Notice of the Breach Any partner of the LLP may give notice of default to the defaulting partner citing the nature of default and the action required to be taken by defaulting partner to make good the same. The default shall be cured within 30 days after the service of such notice.