Partnership winding up
- 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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