An ordinary partnership can be dissolved by any of the partners at any time and the process doesn’t require all the partners to agree. Notice of termination can be served by one or more partners or a simple agreement can be reached.A dissolution of partnership deed can be used to properly wind up the partnership and divide any assets or liabilities - this also applies to LLPs and limited partnerships (see below). Partners must publicise the dissolution. This can be done by writing to any relevant parties (eg customers or suppliers) and advertising in the relevant Gazette.
Automatic dissolution takes place if:
- a partnership was formed for a specific term or project which has concluded
- one or more partners dies or goes bankrupt
- it becomes illegal to carry on the business of the partnership
In certain cases, a partnership can be dissolved by court order (eg if one partner successfully complains that another partner is incapable of performing their part of the partnership contract).