PARTNERSHIP ACT 1895 - SECT 57
PARTNERSHIP ACT 1895 - SECT 57
57 . Rules for distribution of assets on final settlement of accounts
(1) In settling
accounts between the partners after a dissolution of partnership, the rules
set out in subsections (2) and (3) shall, subject to any agreement, be
observed.
(2) Losses, including
losses and deficiencies of capital shall be paid first out of profits, next
out of capital, and lastly, if necessary, by the partners individually in the
proportion in which they were entitled to share profits.
(3) The assets of the
firm, including the sums, if any, contributed by the partners to make up
losses or deficiencies of capital, shall be applied in the following manner
and order —
(a) in
paying the debts and liabilities of the firm to persons who are not partners
therein;
(b) in
paying to each partner rateably what is due from the firm to him for advances
as distinguished from capital;
(c) in
paying to each partner rateably what is due from the firm to him in respect of
capital;
(d) the
ultimate residue, if any, shall be divided among the partners in the
proportion in which profits are divisible.
[Section 57 amended: No. 19 of 2010 s. 51.]
[Schedule omitted under the Reprints Act 1984 s. 7(4)(f).]