Responsibilities to the Partnership
Partners owe general duties and responsibilities to the partnership. These responsibilities include:
- a duty of loyalty and care,
- equal profit sharing (unless there’s an agreement that says otherwise), and
- equal control and no salary (unless there’s an agreement).
The fiduciary duty of care requires that a partner exercise due care in caring out any activity for or on behalf of the partnership. The duty of loyalty requires that that all partners act in the best interest of the partnership. That is, partners cannot act primarily in their personal interests at the expense of the partnership. This includes usurping an opportunity for oneself that belongs to the partnership. Partners must provide a proper financial accounting of their actions, and the partnership can sue individual partners for any financial wrongdoing.
Fiduciary duties in business entities is discussed in greater detail in the Agency-Fiduciary section.