Partnership Law Act 2019

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

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

You could also call this:

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

If you're in a partnership, here's something important to know. If one of your partners lets their share of the partnership property be used as security for their personal debt, you and the other partners can end the partnership. This is called dissolving the partnership. However, all the other partners must agree to do this. Nobody can decide to end the partnership on their own. This rule helps protect the partnership if one partner's personal debts might put the partnership's property at risk.

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This page was last updated on 13 May 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS206087.

Topics:

Business > Industry rules

69: Partnership dissolved by death or bankruptcy, or

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

71: Partnership dissolved if unlawful, or

"Partnerships must end if they become against the law"

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

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

If a partner allows their interest in the partnership property to be charged under this Act for the partner’s separate debt (see section 42), the other partners may dissolve the partnership.
The decision of the other partners to dissolve the partnership must be unanimous.

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1908 No 139 s 36(2)