Insolvency of general partnerships—administration
Produced in partnership with Natasha Dzameh of St John's Chambers
Insolvency of general partnerships—administration

The following Restructuring & Insolvency practice note produced in partnership with Natasha Dzameh of St John's Chambers provides comprehensive and up to date legal information covering:

  • Insolvency of general partnerships—administration
  • Background
  • Relevant legislation
  • Forms
  • Grounds for administration
  • Application for administration
  • Qualifying agricultural floating charge (QAFC)
  • Appointment of administrator by members
  • Effect of appointment
  • Process
  • More...

Insolvency of general partnerships—administration


The regime for administration of general partnerships is very similar to the administration of insolvent companies (for companies, see Administration—overview). The administration procedure permits an administrator to be appointed to a partnership either by the court or out of court. The procedure requires adaptation to take account of a number of factors including the fact that a partnership is not a separate legal personality to its members and that it cannot give a floating charge, except for an agricultural floating charge in the context of a farming partnership.

General partnerships, unlike limited liability partnerships (LLPs) have no separate legal personality, therefore the partners remain jointly and severally liable for the partnership debts. If there is no written partnership agreement the standard agreement provisions of the Partnership Act 1890 apply. Limited partnerships under the Limited Partnership Act 1907 (LPA 1907) also have no separate legal personality but may be registered at Companies House. With limited partnerships, the general partner(s) manage the business with unlimited liability while the limited partner(s) have limited liability. Both general partnerships and limited partnerships may be subject to winding-up/bankruptcy (in the case of individual partners), administration and voluntary arrangements.

Relevant legislation

The Enterprise Act 2002 amended the Part II of the Insolvency Act 1986 (IA 1986) to bring in a procedure for administration. This revised procedure is applicable to partnerships by

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