CALL US ON 08456 800 727
DISSOLUTION AND WINDING UP

Dissolution

Dissolution occurs when the partnership terminates as whole.

Where a partnership is dissolved this normally results in a winding-up of its affairs. However, such a winding-up is not inevitable - for example, where a dissolution is as a result of a partner leaving (and assuming that the partnership agreement does not provide for the continuation of the partnership after he has left) the remaining partners can procure that the partnership continues, if they so wish.

The law provides for dissolution in certain scenarios, such as a unanimous decision to dissolve by the partners, expiry of a fixed term partnership, bankruptcy or death of a partner. However, it is common for a comprehensive partnership agreement to amend the circumstances in which the partnership dissolves and may provide for additional dissolution events.



Winding Up

Winding up of the partnership's business usually follows dissolution of the partnership. The assets of the partnership are sold, partnership debts paid off and any surplus distributed to the partners in accordance with their entitlement, as prescribed by the partnership agreement.

Insolvent partnerships must be wound up (as unregistered companies under insolvency legislation).


BACK

The information provided on this website is intended as a general guide only. It is not exhaustive or tailored to your individual circumstances. Please consult our Website Terms of Use for further information.


Services

Helpful Information

About Legal Clarity

Accountants

View details of our service here.

Solicitors

View details of our service here.

Free Company Name Check

Is your choice of company name available?

Click here to check.


© 2015 Legal Clarity Limited: Corporate & Commercial Legal Services - Company Formation - Company Secretarial Registered in England and Wales (number 6452925) and authorised and regulated by the Solicitors Regulation Authority (SRA number 573589). Avebury House, 55 Newhall Street, Birmingham B3 3RB. Tel: 08456 800 727. VAT registration number 925709016.