Q&As

In a two-person partnership, can one partner retire and a new partner be admitted simultaneously without resulting in the partnership dissolving, and would it be sensible for the admission and retirement to be dealt with in two separate documents?

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Published by a ³ÉÈËÓ°Òô Corporate expert
Published on: 26 March 2020
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If a Partnership experiences a change in its composition that results in it having only one remaining partner, eg where two people are in partnership together and one of them retires, the partnership will automatically dissolve, because the one remaining partner cannot be in partnership on their own.

Therefore, if one of the partners in a two-party partnership intends to retire at the same time as a new partner is admitted, care should be taken to ensure that the Admission of the new partner takes place prior to the retirement of the other partner,

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Jurisdiction(s):
United Kingdom
Key definition:
Partnership definition
What does Partnership mean?

A partnership (as defined) formed under the Partnership Act 1890 (PA 1890) and governed by English law is the 'relation that subsists between two or more persons carrying on business in common with a view of profit' and is also referred to as a ‘firm’.

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In a two-person partnership, can one partner retire and a new partner be admitted simultaneously without

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