Partnership Law Act 2019

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

71: Partnership dissolved if unlawful

You could also call this:

"Partnerships must end if they become against the law"

If something happens that makes it against the law for a partnership to continue its business, the partnership must end. This can happen in two ways. First, if it becomes illegal for the partnership to carry on its business activities. Second, if it becomes illegal for the partners to work together in a partnership. In either of these cases, the partnership is dissolved, which means it stops existing as a legal entity.

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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=LMS206088.

Topics:

Business > Industry rules

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"

72: Court may dissolve partnership, or

"A judge can break up a business team if things aren't working out"

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

71Partnership dissolved if unlawful

A partnership is dissolved if an event occurs that makes it unlawful for—
the partnership business to be carried on; or
the partners to carry on the business in partnership.

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1908 No 139 s 37