Which reasons dissolve the partnership

Although the term dissolution implies termination, dissolution is actually the beginning of the process that ultimately terminates a partnership. It is, in essence, a change in the relationship between the partners. This means the partnership cannot be dissolved by agreement, if partners previously agreed but subsequently change their mind. The relevant law is complex. Instead, shareholders vote to wind up the business.

If the partnership was created for a particular project, or fixed period, the partnership is dissolved when appropriate. For limited companies, the concept of expiration does not exist. The shareholders vote to have Companies House strike off the register of members. LLPs have a similar process. Partnerships automatically dissolve if any partner dies or becomes bankrupt, unless otherwise agreed.

Thus partnerships should have a written partnership agreement, with provisions that permit the partnership to continue. If the business trades as a Ltd company or an LLP, then the death or bankruptcy of a member does not cause the business to automatically dissolve. Dissolution by the court is likely to be contentious, otherwise the partnership would dissolve by agreement. The court can dissolve a partnership on several grounds, including that dissolution is just and equitable, because e.

Failure to adhere strictly to the procedures set out in law can land you in court. An insolvency specialist at AABRS will be able to guide you through the process, from serving a notice of dissolution through to paying creditors and distributing the proceeds from the sale of assets.

Just get in touch today for a free, no-obligation consultation with our team. Home » How do you Dissolve a Partnership? How do you Dissolve a Partnership? Free Confidential advice is a click away. Here at AABRS we can offer free, immediate advice over live chat in working hours, or you can call us on Your attorney can represent you in court and can help you with your case if you need to be involved in a partnership lawsuit.

Jose Rivera. He has been with LegalMatch since March of He contributes to the law library section of the company website by writing on a wide range of legal topics. His articles aim to provide understandable, easy-to-read explanations for legal questions frequently raised by those with legal inquiries. Jose also contributes to LegalMatch's Law Blog , covering current events and developments in the legal field. Jose holds a J. Davis School of Law and a B. He also has experience in general digital marketing, SEO, and content management.

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