Section 12 of IPA : Section 12: The Conduct Of The Business

Explanation using Example

Imagine a scenario where three individuals, A, B, and C, have formed a partnership to run a cafe. According to Section 12 of The Indian Partnership Act, 1932:

1. A, B, and C each have the right to participate in making decisions about the cafe's operations, such as the menu or the suppliers.
2. If A neglects his responsibilities, such as not managing the inventory, B and C can hold him accountable for not attending to his duties diligently.
3. Should a dispute arise over whether to extend business hours, a majority vote among A, B, and C can resolve the issue, provided everyone has had the chance to voice their opinion.
4. B suspects that the cafe's expenses are too high and requests to see the financial books. Under the law, she has the right to access, inspect, and copy these records to review the firm's financial dealings.