CS Professional · CSR and Social Governance · Partnership Firms
Lata and Manoj are partners. Lata learns that Manoj has received a favourable offer that affects the firm's profits but has not shared the details with her. Later, Lata's legal representative asks for full information on all things affecting the firm. Which duty is Manoj in breach of?
Manoj breaches the general duty of partners to render true accounts and full information of all things affecting the firm to any partner or his legal representative, alongside the duty to be just and faithful to each other.
- AThe duty to render true accounts and full information of all things affecting the firm to any partner or his legal representativeCorrect
- BThe duty to make Lata a minor partner
- CThe duty to pay Lata a salary
- DThe duty to dissolve the firm on request
Explanation
Partners must render true accounts and full information of all things affecting the firm to any partner or his legal representative. This is part of the general duties, along with being just and faithful and carrying on business to the greatest common advantage. The other options are not duties stated by the Act.
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