First Principles of Business Law
Business organisations in Australia

5. Partnerships

Question 14. What happens to a general partnership if there is a change in the membership?

 

 

 

Read the statements below and select the best one.

(a) If the membership of a partnership changes, that partnership must be wound up and a full accounting done. If the business concerned is to be continued thereafter, a new partnership must be formed for that purpose.

(b) If the membership of a partnership changes, it is not necessary that the partnership be wound up and a full accounting done. Australian law allows a continuation of the partnership despite a change of membership.

 

 

 

 

 

 

 

 

  
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