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What's New Important due dates for the month of September 2021     

24. Cessation of partnership interest

(1) A partner of a limited liability partnership may cease to be a partner-

   (a) in accordance with the limited liability partnership agreement; or

   (b) in the absence of such agreement, by that partner giving thirty days' notice to the other partners of that partner's intention to resign as a partner.

(2) Without affecting the generality of subsection (1)-

    (a) a partner of a limited liability partnership shall cease to be a partner upon the death or dissolution of the partner; and
    (b) in the case of a limited liability partnership which is formed for the purposes of carrying on any professional practice, a partner shall cease to be a partner if he has been disqualified from carrying out the professional practice under the relevant governing law as specified in the third column of the First schedule.
 
(3) Where a partner of a limited liability partnership ceases to be a partner, unless otherwise provided in the limited liability partnership agreement, such partner, his personal representative or its liquidator, as the case may be, shall be entitled to receive from the limited liability partnership an amount-
(a) equal to the former partner's capital contribution to the limited liability partnership and that former partner's right to share in the accumulated profits of the limited liability partnership after the deduction of losses of the limited liability partnership; and
(b) determined as at the date the former partner ceased to be a partner.
 
(4) Where a partner ceases to be a partner, such partner, or his personal representative or its liquidator, as the case may be, shall cease involvement in the management of the limited liability partnership.
 
(5) Any former partner, or the former partner's personal representative or liquidator who fails to comply with subsection (4) commits an offence.
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