Business Insurance Life Part VII – Partnerships- Disposition of Partnership Interest
Monday, March 8th, 2010 at
1:08 pm
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When the partners cease to carry on business together, this is known as dissolution. If the business ceases to do business, it is said to be “wound-up”. This involves the liquidation of the company property, payment of debts and distribution of the net proceeds.In fact, the dissolution of the partnership does not automatically lead to a wind-up of the business. It may be restructured as a new partnership, sole proprietorship, or even as a corporation, providing all parties are in agreement. It may be caused by following factors
1. Expiration of term
2. Termination of undertaking.
3. Death of a partner.
4. Insolvency of a partner.
5. Any event that makes it unlawful.
