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Likewise a partner may not use partnership property

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Likewise, a partner may not use partnership property for personal orprivate purposes unless the partners consent to this (or if limited andoccasional use of partnership property would not conflict with the carryingon of the partnership business). But he or she may, of course, usepartnership property for the purposes of the partnership business.The partner’s right to use partnership property does not enable him orher to alienate, mortgage or encumber partnership assets, unless suchassets are sold in the usual course of the partnership business. In allother cases a joint decision by the partners is required.2.5.6Partnership accountsPartners who are given the right to manage the partnership businessmust render an account of their administration of the partnershipbusiness. The duty to keep accounts may be imposed on one partner, towhom all the other partners must make relevant information available.Accounts must be rendered annually in general, and also on dissolution ofthe partnership, and must be supported by vouchers, documents and thebooks of the partnership business.Partners are entitled to have access to partnership accounts at all timesunless otherwise agreed. The partnership books must, at the insistence ofa partner, be keptat the principal place of business. They cannot, for instance, be kept atthe residence of a partner merely for the latter’s own convenience.A partner isprima facieentitled to a full investigation of the partnershipbooksand, in the absence of contrary agreement, to be assisted byqualified auditors.[72][73][74][75]Downloaded by Angelique van der Merwe ([email protected])lOMoARcPSD|5682980
2.5.7Compensation, refunds and indemnitiesAs a general principle, partners are not entitled to remuneration forservices rendered to the partnership, nor are they entitled to interest oncapital contributed to the partnership. The underlying reason is that apartner’s benefit is derived from his or her share in the profits of thepartnership business. Nonetheless it is permissible for the partners toagree that a particular partner is to be paid interest on capitalcontributed, or is to receive a salary or a fee for certain partnership dutiesor special services rendered to the partnership, or is to be compensatedfor providing to the partnership the use of certain assets.Regarding expenses and indemnification, a partner is entitled to aproportionate refund for expenses personally incurred in the course ofconducting partnership business and, similarly, to an indemnification forlosses personally sustained.2.6Contracting on behalf of the partnership2.6.1GeneralFrom a legal perspective, the character of a partner is much morecomplex than that of an agent.A partner must not be equated with anagent.

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Term
Fall
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Corporation, Angelique van der Merwe

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