Victorian Consolidated Legislation

Partnership Act 1958 - SECT 46

Share of profits made after dissolution

46. Share of profits made after dissolution

Where any member of a firm has died or otherwise ceased to be a partner and
the surviving or continuing partners carry on the business of the firm with
its capital or assets without any final settlement of accounts as between the
firm and the outgoing partner or his estate then in the absence of any
agreement to the contrary the outgoing partner or his estate is entitled at
the option of himself or his representatives to such share of the profits made
since the dissolution as the court may find to be attributable to the use of
his share of the partnership assets or to interest at the rate of seven per
centum per annum on the amount of his share of the partnership assets:
Provided that where by the partnership contract an option is given to
surviving or continuing partners to purchase the interest of a deceased or
outgoing partner and that option is duly exercised the estate of the deceased
partner or the outgoing partner or his estate as the case may be is not
entitled to any further or other share of profits, but if any partner assuming
to act in exercise of the option does not in all material respects comply with
the terms thereof he is liable to account under the foregoing provisions of
this section.