Provisions of the Partnership Act
In the event of absence of a partnership agreement/deed or in the event of ambiguity therein, the provisions to the partnership Act will apply. The provisions state that, unless the partnership deed indicates otherwise,
- Every partner has a right to take part in the conduct of business;
- All profits/losses are to be shared equally;
- No interest on capital is to be allowed;
- No partner is entitled to a salary;
- No interest on drawings is to be charged;
- 6% per annum is to be allowed on amounts contributed by each partner exceeding the agreed capital amounts;
- Normal business decisions can be taken by a majority vote;
- Major business decisions e.g. major business changes must obtain the full consent of all partners