Dissolution of Partnership Deed
This Dissolution of Partnership Deed is required should the partners in business together unanimously decide to cease trading and wind up their partnership completely. In the event of dissolution, the partners will need to decide how the net assets will be realised, liabilities of the partnership discharged and the process of winding up managed.
This deed contemplates that:
- the dissolution is a complete winding up (should some partners wish to continue the business after the formal dissolution, the relevant parties should enter into a separate asset purchase agreement for the specific assets concerned);
- the business is solvent;
- the partnership is governed by an existing partnership agreement which allows for its dissolution without imposing onerous terms. It is advisable to check the terms of any relevant partnership agreement before deciding upon the terms for dissolution; and
- the partnership has no employees.
This template has been drafted as a deed due to the potential lack of consideration as deeds are generally enforceable despite any lack of consideration.
This deed does not cover the tax implications of dissolution. It is recommended that independent tax and accounting advice is sought.
This deed has been updated and refreshed to reflect current best practice.
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