Cessation of partnership interest: departing partners remain liable for prior obligations and receive capital contribution plus profit share. Cessation of partnership interest occurs by agreement or written resignation, or by death, dissolution, unsound mind, or insolvency. A former partner is treated as a partner in relation to third parties until notice is given or filed with the Registrar. Cessation does not discharge prior obligations. Unless the LLP agreement otherwise provides, the former partner or successor is entitled to the actual capital contribution and a share of accumulated profits net of accumulated losses as at cessation, but has no management rights.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Cessation of partnership interest: departing partners remain liable for prior obligations and receive capital contribution plus profit share.
Cessation of partnership interest occurs by agreement or written resignation, or by death, dissolution, unsound mind, or insolvency. A former partner is treated as a partner in relation to third parties until notice is given or filed with the Registrar. Cessation does not discharge prior obligations. Unless the LLP agreement otherwise provides, the former partner or successor is entitled to the actual capital contribution and a share of accumulated profits net of accumulated losses as at cessation, but has no management rights.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
