Question:
Partnership Law?
kooldude
2007-01-19 01:42:23 UTC
In the absence of a Partnership Agreement,
1. how do you dissolve a partnership ?
2. how do you decide who much each partner can draw in funds ?
Three answers:
anonymous
2007-01-19 01:52:15 UTC
Technically, all partnerships go through dissolution and "winding up" regardless of the circumstances. If you've been doing business with a partner, you have essentially ratified your partnership.



To dissolve, you simply quit doing business, quit renewing your license, and stop using the company name in relationships with other companies and people.



The "winding up" is nothing more than the liquidation of assets, and you'll likely have to go with even shares to all partners. Without a partnership agreement, you have an equal share implied, although you could also make a case for basing your percentage of interest by the value of assets you've contributed, the amount of time you've worked, etc. Where there are obvious imbalances, it's not an easy decision.



You might want to peruse the Revised Uniform Partnership Act (RUPA).



I've thought about your question more and I'm wondering how you could have a business license without a partnership agreement? Who's name is on the license? If there's only one name, then there's no partnership. What you have is a sole proprietorship with perhaps some investors and verbal agreements. If this is the case, the investors really have no right to the company assets. The owner has a responsibility to the investors, but what exactly that is depends on your arrangements.
Steve
2015-08-02 22:55:05 UTC
In Australia, because partnership law is State-based, there are 8 Partnership Acts governing the entering into a Partnership Agreement (6 states and 2 territories).



See legalspeak dictionary https://www.docdownload.com.au/legalspeak-some-basic-legal-terms#partnership
crime_branch28
2007-01-19 02:05:53 UTC
first of all, in the abscence of partnership agreement there is no question of its dissolution bcz it never was. you have to decide on the basis of capital of each patner which he invested at the start of it. if the firm is in loss , the funds will be used to pay the debts and the residue will be divided among partners on the percentage of basic investment.


This content was originally posted on Y! Answers, a Q&A website that shut down in 2021.
Loading...