.gif) |
Under
the Partnership Act no person can be admitted into partnership without the
consent of the other partner or partners unless there is any contract to
the contrary (s. 31). |
|
Any partner may. with the consent of all the other
partners or in terms of the deed of partnership where the partnership is
at will, by giving notice in writing to all other partners, to that effect,
dissolve the partnership or retire from partnership. |
|
A retiring partner,
however, continues to be liable to third parties even If the liability Is
taken over by the remaining partners (s. 32) Therefore in a deed of retirement
it is necessary to provide that In the event of the retiring partner being
held liable by a third party, the remaining partners shall indemnify him
to that extent, when the liabilities are taken over by the remaining partners. |
|
Insolvency of a partner also causes compulsory retirement of an insolvent
partner (s. 35). It is, therefore, generally provided in a deed of partnership
when there are more than two partners that the insolvency of any partner
will not dissolve the partnership. If a partner retires, unless there is
contract. to the contrary, the retiring partner cannot use the firm name,
represent himself as carrying on the business of the firm or solicit the
customers of the Firm. (s. 36). |
|
Therefore, in a deed of retirement It is
generally not necessary to make explicit that the retiring partner shall
not do any of these things. But if he is to be restrained from carrying
on similar business for a specified period or in a specified area, such
condition can be provided in she deed of retirement and it is legal (s.
36(2)). |
|
