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What is a Dissolution of Partnership Deed?

Partnerships come to an end for a variety of reasons, but you can wind up the business with legal formality and transparency with this Dissolution of Partnership Deed. This partnership dissolution deed outlines all the important details regarding the dissolution and winding up of the business, including the date on which the partnership will cease trading, what the partners can and cannot do from this date, the discharge of the partnership’s liabilities, the allocation of assets, and the retention of proper records.

Key points included

When drafting a Dissolution of Partnership Deed, it is important to focus on a number of key clauses, in particular:

  • Date of the original partnership agreement;
  • Details of the partner who will maintain the records of the partnership;
  • Date of dissolution;
  • Number of days from the dissolution date within which the partners will prepare a list of the partnership’s assets;
  • Number of days from the dissolution date within which the partners will endeavour to sell the partnership as a going concern;
  • Level of professional indemnity insurance the partners will maintain after the dissolution date (if any);
  • Remaining debts and liabilities; and
  • Date of this signed deed.

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