Partnership Law Act 2019

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

81: Retiring or deceased partner’s share is debt

You could also call this:

"When a partner leaves or dies, they're owed money for their part of the business"

When a partner leaves or dies in a partnership, the other partners owe them money. This money is for the partner's share of the business. You start owing this money from the day the partner leaves or dies.

If you and your partners have made a different agreement about this, that agreement will be used instead of this rule.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS206101.


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

81Retiring or deceased partner’s share is debt

  1. The amount due from surviving or continuing partners to an outgoing partner or the personal representatives of a deceased partner, in respect of the outgoing or deceased partner’s share, is a debt accruing at the date of the dissolution or death.

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

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