Partner Responsibilities to the Partnership - Explained
What are the Duties of Partners
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Table of ContentsWhat are the Responsibilities of Partners to the Partnership?What is a Partner's Duty of Care?What is a Partner's Duty of Loyalty?What is a Partner's Duty of Accounting?Academic Research
What are the Responsibilities of Partners to the Partnership?
Partners owe general duties and responsibilities to the partnership. These responsibilities include:
- a duty of loyalty and care,
- equal profit sharing (unless there's an agreement that says otherwise), and
- equal control and no salary (unless there's an agreement).
What is a Partner's Duty of Care?
The fiduciary duty of care requires that a partner exercise due care in caring out any activity for or on behalf of the partnership.
What is a Partner's Duty of Loyalty?
The duty of loyalty requires that all partners act in the best interest of the partnership. That is, partners cannot act primarily in their personal interests at the expense of the partnership. This includes usurping an opportunity for oneself that belongs to the partnership.
What is a Partner's Duty of Accounting?
Partners must provide a proper financial accounting of their actions, and the partnership can sue individual partners for any financial wrongdoing.
Fiduciary duties in business entities is discussed in greater detail in the Agency-Fiduciary section.
- Uniform Partnership Act
- Uniform Limited Partnership Act
- Partnership Agreement
- At-Will Partnerships
- Responsibilities of Partners to the Partnership
- Silent Partner
- Funding the Partnership
- How are Partners Compensated
- Splitting Equity in an Industrial Partnership
- Terminating the Partnership
- Types of Partnerships
- What are the main characteristics of a General partnership?
- Tort Liability of General Partner
- What are the main characteristics of a Joint venture?
- What are the main characteristics of a Limited partnership?
- Family Limited Partnership
- Master Limited Partnership
- What are the main characteristics of a Limited liability partnership?