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Partnership Law Act 2019

Financial reporting, dissolution of partnership, and other miscellaneous provisions - End of partnership - Dissolving a partnership

76: Application of partnership property

You could also call this:

"How partnership money and property are used when a partnership ends"

When a partnership ends, you have the right to make sure the partnership's money and property are used correctly. First, you can ask for the partnership's property to be used to pay off any debts or bills the partnership owes. After all the debts are paid, if there's any money left over, you can ask for it to be shared among the partners. The amount each partner gets depends on what they're owed and what they might owe the partnership.

If you're a partner or someone representing a partner, you can ask a court to help sort out the partnership's business and money matters when it ends. This is called "winding up" the partnership.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS206094.

Topics:
Business > Industry rules
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"Partners can finish up business after a partnership ends"

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Part 4Financial reporting, dissolution of partnership, and other miscellaneous provisions
End of partnership: Dissolving a partnership

76Application of partnership property

  1. When a partnership is dissolved, every partner is entitled as against the other partners, and all persons who claim through them in respect of their interests as partners, to have—

  2. the partnership property applied in payment of the debts and liabilities of the firm; and
    1. the surplus assets (after the payment of those debts and liabilities) applied in payment of what may be due to each of the partners (after deducting what may be due from them as partners).

      1. For the purpose of this section, a partner or the partner’s representatives may, on the dissolution of the partnership, apply to the court to wind up the business and affairs of the partnership.

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