362.235 Rules determining rights and duties of partners.

302 words·~1 min read·/ky/chapter-362/362-235

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

The rights and duties of the partners in relation to the partnership shall be determined, subject to any agreement between them, by the following rules:

(1)Each partner shall be repaid his contributions, whether by way of capital or

advances to the partnership property, and share equally in the profits and surplus

remaining after all liabilities, including those to partners, are satisfied; and, except

as provided in KRS 362.220(2), each partner shall contribute toward the losses,

whether of capital or otherwise, sustained by the partnership according to his share

in the profits.

(2)Except as provided in KRS 362.220(2), the partnership shall indemnify every

partner in respect of payments made and personal liabilities reasonably incurred by

him in the ordinary and proper conduct of its business, or for the preservation of its

business or property.

(3)A partner, who in aid of the partnership makes any payment or advance beyond the

amount of capital which he agreed to contribute, shall be paid interest from the date

of the payment or advance.

(4)A partner shall receive interest on the capital contributed by him only from the date

when repayment should be made.

(5)All partners have equal rights in the management and conduct of the partnership

business.

(6)No partner shall be entitled to remuneration for acting in the partnership business,

except that a surviving partner shall be entitled to reasonable compensation for his

services in winding up the partnership affairs.

(7)No person shall become a member of a partnership without the consent of all the

partners.

(8)Any difference arising as to ordinary matters connected with the partnership

business may be decided by a majority of the partners; but no act in contravention of

any agreement between the partners shall be done rightfully without the consent of

all the partners.