Partnership Law Act 2019

Financial reporting, dissolution of partnership, and other miscellaneous provisions - End of partnership - How partnership may end

69: Partnership dissolved by death or bankruptcy

You could also call this:

"Partnership ends when a partner dies or runs out of money"

A partnership can end if one of the partners dies or goes bankrupt. This means the partnership stops for everyone involved, not just the person who died or went bankrupt. However, if you and your partners have made a special agreement about what should happen in these situations, that agreement will be followed instead. This is how the law works unless you've decided on something different with your partners.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS206086.


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68: Partnership that continues after end of fixed term, or

"When partners keep working together after their set time is up"


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70: Partnership may be dissolved if partner’s interest in property is charged, or

"Partners can end the partnership if one partner uses their share as security for a personal debt"

Part 4Financial reporting, dissolution of partnership, and other miscellaneous provisions
End of partnership: How partnership may end

69Partnership dissolved by death or bankruptcy

  1. A partnership is dissolved with respect to all the partners by the death or bankruptcy of any partner.

  2. This section is subject to any agreement between the partners.

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