1950_PARTNERSHIP_ORDINANCE — Page 14

Partnership.

[CAP. 38

distribution

46. In settling accounts between the partners after a Rules for dissolution of partnership, the following rules shall, subject of assets on to any agreement, be observed-

(a) 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

(b) 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 fol- lowing manner and order-

(i) in paying the debts and liabilities of the firm to persons who are not partners therein;

(ii) in paying to each partner rateably what is due from the firm to him for advances as distin- guished from capital;

(iii) in paying to each partner rateably what is due from the firm to him in respect of capital; and (iv) the ultimate residue, if any, shall be divided among the partners in the proportion in which profits are divisible.

[44

47. The rules of equity and of common law applicable to partnership shall continue in force, except so far as they are inconsistent with the express provisions of this Ordinance.

[46

final settle- ment of accounts.

Saving for equity and of

rules of

common law.

325