Victorian Consolidated Legislation

Partnership Act 1958 - SECT 42

Continuing authority of partners for purposes of winding up

42. Continuing authority of partners for purposes of winding up

After the dissolution of a partnership the authority of each partner to bind
the firm and the other rights and obligations of the partners continue
notwithstanding the dissolution so far as may be necessary to wind up the
affairs of the partnership and to complete transactions begun but unfinished
at the time of the dissolution but not otherwise: Provided that the firm is in
no case bound by the acts of a partner who has become bankrupt but this
proviso does not affect the liability of any person who has after the
bankruptcy represented himself or knowingly suffered himself to be represented
as a partner of the bankrupt.