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Archive for January, 2011

Business Structure 2. Partnership

Nature of structure

  • Carrying on a business in common with a view to profit.
  • Not a separate legal entity
  • Partnership does not pay tax
  • Formal / Informal – partnership deed
  • Governing law – Partnership Act 1908, Law of contract
  • Limited duration – fixed by partners or indefinite until a terminating event occurs.
  • Jointly and severally liable
  • Control – every partner may take part in the management of business
  • Admission of new partner – requires dissolution of old partnership