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.