A partnership can be wound up and liquidated as an unregistered company if:
- The partnership is dissolved, or ceases to trade
- If the partnership is unable to pay its debts
- If a court feels it is just & equitable to wind it up
A partnership winding up petition can be proposed by the following:
- A creditor’s petition.
A creditor can petition to wind up the
partnership, but not issue bankruptcy petitions against the
individual partners. Or the creditor can issue a petition to
wind up the partnership concurrently with a bankruptcy petition
against one or more of the individual partners
- A partner’s petition.
The partners (or trustees) can petition
to wind up the partnership, but not bankruptcy. Or the partners
can issue a petition to wind up the partnership concurrently with
bankruptcy for the individual partners
- The supervisor of a voluntary arrangement
Once the petition has been heard by the court and a winding up order made, the official receiver will be appointed, as liquidator, to deal with the affairs of the partnership.
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