Partnership Expulsion, Retirement and Continaunce

Key provisions of the Partnership Act 1958 (Vic) relating to expulsion, retirement and continuance are outlined below.

 

Expulsion of partner

 

No majority of the partners can expel any partner unless a power to do so has been conferred by express agreement between the partners.

 

Retirement from partnership at will

 

Where no fixed term has been agreed upon for the duration of the partnership any partner may terminate the partnership at any time on giving notice of his or her intention so to do to all the other partners.

Continuance of partnership on old terms

Where a partnership entered into for a fixed term is continued after the term has expired and without any express new agreement, the rights and duties of the partners remain the same as they were at the expiration of the term (so far as is consistent with the incidents of a partnership at will).

A continuance of the business by the partners (or such of them as habitually acted in the partnership during the term) without any settlement or liquidation of the partnership affairs is presumed to be a continuance of the partnership.

For more information on the effect of the Partnership Act 1958 (Vic) and on the importance of partnership agreements, see:

See also our articles on structuring and other aspects of business relationships.

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If you would like to discuss any aspect of this article with us, or share your own experiences, please contact Rod Stumbles at +613 8692 7255 or here.

 

DISCLAIMER

 

This article provides general information only and is not intended to constitute legal advice.  No lawyer-client, solicitor-client or attorney-client relationship has been created between us.  You must not rely on the contents of this article, whether as an alternative to legal advice from a lawyer or other professional legal services provider or otherwise.  You should not take, discontinue or refrain from taking any action because of your understanding of the contents of this article, including without limitation delay seeking legal advice or disregard legal advice.  If you have any specific questions about any matter, you should engage us or other lawyers or other professional legal services providers to provide you with the necessary advice.  Keep in mind that you may be facing important deadlines so you should not delay in engaging someone to provide you with the advice.