842
No. 1 of 1897.
Retiring or
deceased
partner's share to be a debt.
*
Rule for distribution
of assets on final settlement of accounts.
*
PARTNERSHIP.
share of the profits made since the dissolution as the Court may find to be attributable to the use of his share of the partnership assets, or to interest at the rate of 8 per cent. per annum on the amount of his share of the partnership assets.
(2) Provided that where, by the partnership contract, an option is given to surviving or continuing partners to purchase the interest of a deceased or outgoing partner, and that option is duly exercised, the estate of the deceased partner or the outgoing partner or his estate, as the case may be, is not entitled to any further or other share of profits; but if any partner assuming to act in exercise of the option does not in all material respects comply with the terms thereof, he is liable to account under the preceding provisions of this section.
43. Subject to any agreement between the partners, the amount due from surviving or continuing partners to an outgoing partner or the representatives of a deceased partner in respect of the outgoing or deceased partner's share is a debt accruing at the date of the dissolution or death.
44. In settling accounts between the partners after a dissolution of partnership, the following rules shall, subject to any agreement, be observed :-
(1) losses, including losses and deficiencies of capital, shall be paid first out of profits, next out of capital, and lastly, if necessary, by the partners individually in the proportion in which they were entitled to share profits; and
(2) the assets of the firm, including the sums, if any, contributed by the partners to make up losses or deficiencies of capital, shall be applied in the following manner and order :—
(a) in paying the debts and liabilities of the firm to persons who are not partners therein;
(b) in paying to each partner rateably what is due from the firm to him for advances as distinguished from capital;
(c) in paying to each partner rateably what is due from the firm to him in respect of capital; and
(d) the ultimate residue, if any, shall be divided among the partners in the proportion in which profits are divisible.
id: 33 244
2.8
45. In this Ordinance,-
*As amended by No. 8 of 1912.
As amended by No. 50 of 1911 and No. 8 of 1912.
842
No. 1 of 1897.
Retiring or
deceased
partner's share to be a debt.
*
Rule for distribution
of assets on final settle- ment of accounts.
*
PARTNERSHIP.
share of the profits made since the dissolution as the Court may find to be attributable to the use of his share of the partner- ship assets, or to interest at the rate of 8 per cent. per annum on the amount of his share of the partnership assets.
.(2) Provided that where, by the partnership contract, an option is given to surviving or continuing partners to purchase the interest of a deceased or outgoing partner, and that option is duly exercised, the estate of the deceased partner or the outgoing partner or his estate, as the case may be, is not entitled to any further or other share of profits; but if any partner assuming to act in exercise of the option does not in all material respects comply with the terms thereof, he is liable to account under the preceding provisions of this section.
43. Subject to any agreement between the partners, the amount due from surviving or continuing partners to an outgoing partner or the representatives of a deceased partner in respect of the out- going or deceased partner's share is a debt accruing at the date of the dissolution or death.
44. In settling accounts between the partners after a dissolution of partnership, the following rules shall, subject to any agreement, be observed :-
(1) losses, including losses and deficiencies of capital, shall be paid first out of profits, next out of capital, and lastly, if necessary, by the partners individually in the proportion in which they were entitled to share profits; and
(2) the assets of the firm, including the sums, if any, contributed by the partners to make up losses or deficiencies of capital, shall be applied in the following manner and order :—
(a) in paying the debts and liabilities of the firm to persons who are not partners therein;
(b) in paying to each partner rateably what is due from the firm to him for advances as distinguished from capital;
(c) in paying to each partner rateably what is due from the firm to him in respect of capital; and
(d) the ultimate residue, if any, shall be divided among the part- ners in the proportion in which profits are divisible.
id: 33 244
2.8
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Interpreta- tion.
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45. In this Ordinance,-
*As amended by No. 8 of 1912.
As amended by No. 50 of 1911 and No. 8 of 1912.
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