For Daphné Koller, President of Coursera: „The partnership with IMT is an important complement to the agreements we already have with French institutions of excellence. This first illustration of our partnership with the leading French group of engineering and management schools is very promising and indicates a great future. In this lesson, we continue our discussion on partnerships by focusing on the rights and duties of partners in a complementary partnership. Okay, in the last lesson, we learned a little bit about general partnerships. There is unlimited personal liability, which is a major drawback. But in a lesson to come, we will discover other forms of partnerships that can help solve this problem of responsibility. And in this lesson, we will talk about the rights and duties of partners. Well, these rights and obligations apply to general partnerships, but also to these other forms of partnership, which we will see in a lesson to come. And also for many other types of business beyond partnerships. It is therefore a good basis for our future discussion. Remember that we said that more owners mean more complexity. So when partnerships go from two to more owners, things will get complicated. Well, in a partnership, each partner has certain rights and these rights are normally given by the law adopted by the state in which your partnership is organized.
So UPA, RUPA, we talked about this in the last lesson, they give certain rights to the partner. And partners also have certain obligations. Today, a partner`s rights can often be changed by the agreement of the partners. You say you know I have this right, I don`t need it. We can agree to change it through the partnership. This is normal. Most of the time, your homework cannot be changed by the parties. And if we see the list of rights and duties, it is likely that it will be clearer why. So let`s start with the right. As a partner in a partnership, you have some rights.
You have the right to manage the partnership. The right to manage is one of the fundamental rights of the partners. Why would you be in partnership if you didn`t have the right to manage? Now you can change that again. Let`s say your partnership is huge. You have a law firm or audit firm with 100 partners. You don`t want each of those 100 partners to be able to write cheques on behalf of the organization. Thus, you can change the right to manage in such a way that only a small group or a person has the right to carry out certain management activities. But in general, partners have the right to manage, they are entitled to profits and losses. Again, this is very, very important.
Why should you own a partnership if you didn`t want to participate in the profits? Now you can change the share of gains and losses you receive. So the default rule is that all partners participate equally in all profits and losses, regardless of your capital deposits or the amount of work you do on behalf of the partnership, or something like that. The default rule is that everyone shares pro rata based on the number of available partners. Now you can change that. So if there are three partners and you say, well, that partner should have half the profits because he or she has invested half the capital and the other two partners should receive 25 each. You can do that. You can change that. On the right is the right to information. All partners have the right to consult the books and records of the partnership to be aware of contract negotiations and all kinds of things.