Company Law partnership Essay Example | Topics and Well Written Essays - 1500 words

Company Law partnership - Essay ExampleIn certain circumstances partnerships moldiness be dissolved under the Partnership Act 1890 once a partnership contract is performed - eg it was for a fixed term or for a peculiar(prenominal) purpose the death or bankruptcy of a partner a partner assigns his share to a creditor to satisfy a private debt any eccentric which makes it unlawful for the quick to continue its business or to have the status of a partnership (s34) (Macintyre, 2005, 464).Under s35 a partner may seek for prodigality on the basis of one of the following five grounds permanent disability to perform the partnership contract conduct prejudicial to the carrying on of the firm wilful or persistent breach of the agreement which makes it untenable for the other partners to continue the agreement the firm is making a loss and there is no chance of its finances being turned around and/or that the Court considers it to be just and equitable to dissolve the firm. Under the Menta l Health Act 1983 the mental incapacity of a partner can also lead to the dissolution of a partnership. (s34) (Macintyre, 2005, 465).The partners retain the ability to bind the firm following a dissolution to the finis of completing unfinished transactions and all matters incidental to the winding up of the firm (s38 Partnership Act 1890). ... A bankrupt partner cannot bind a firm following dissolution. However, if a receiver is appointed by the Court at the request of one or more partners, then all partners pull back their authority to bind the firm (Macintyre, 2005, 466). An organisations assets consist of both property and goodwill. Goodwill can be defined as the excess of the market value of a business over the value of its individual assets (Macintyre, 2005, 466). Once the firms goodwill is sold it is unlawful for any partner to use the firms name or solicit its customers. He must not, I think, avail himself of his special knowledge of the old customers to regain, without co nsideration, that which he has parted with for value. He must not make his approaches from the vantage ground of his former position. He may not sell the custom and steal away the customers per Lord MacNachten Trego v Hunt 1896 AC 7 (Macintyre, 2005, 466). If a firm is solvent and has make a profit after settling its debts, then these proceeds will be split between the partners according to the proportion agreed upon in their menstruum contracts. However, if the firm is solvent but has made a loss then either the partnership agreement will determine how the loss should be terminate or s44 Partnership Act 1890 is used to determine how the loss should be resolved (Macintyre, 2005, 467). Losses are to be paid out of profit, or crownwork or by the individual partners in the proportion they would have shared the profits (s44(a)).Following its winding up the firm must pay its creditors in the order of external creditors are to be paid in full partners loans are to be repaid