Q&As

In a two-person partnership, can one partner retire and a new partner be admitted simultaneously without resulting in the partnership dissolving, and would it be sensible for the admission and retirement to be dealt with in two separate documents?

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Published on LexisPSL on 26/03/2020

The following Corporate Q&A provides comprehensive and up to date legal information covering:

  • In a two-person partnership, can one partner retire and a new partner be admitted simultaneously without resulting in the partnership dissolving, and would it be sensible for the admission and retirement to be dealt with in two separate documents?

If a partnership experiences a change in its composition that results in it having only one remaining partner, eg where two people are in partnership together and one of them retires, the partnership will automatically dissolve, because the one remaining partner cannot be in partnership on their own.

Therefore, if one of the partners in a two-party partnership intends to retire at the same time as a new partner is admitted, care should be taken to ensure that the admission of the new partner takes place prior to the r

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