Partners no longer

Article Abstract:

Sec 25 of the Partnership Act 1890 facilitates the legal expulsion of a partnership member. The code states that partners can force out one of their members as long as 'a power to do so has been conferred by express agreement between the partners.' Partnership contracts should thus include provisions that give them that right. These agreements should unambigously define the grounds for dismissal and the procedures for taking such an action. Once partners decide that an ouster is necessary, they should inform the concerned party in writing. The notice should be signed by the partners and should indicate the clauses in the agreement pertinent to the case. Then it should be decided how much is to be given to the expelled member, and how and when it should be handed out. Partners should also be adequately prepared for the reactions of most expulsion-notice recipients which may either be to go to the courts or to terminate the firm.

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Reforms to the rescue

Article Abstract:

Legislation covering insolvent partnerships have been revised with the passage of the Insolvent Partnerships Order 1994. These revisions, which outline the new system for winding up bankrupt partnerships, incorporate two new insolvency procedures: administrations and voluntary arrangements. The main provisions of these new procedures are discussed and their implications explained. Basically, administration orders allow the courts to appoint an administrator to assess all proposals for settling the insolvent partnership's obligations. Voluntary arrangements, on the other hand, allow members of an insolvent partnership to enter into a voluntary rescue operation that has the approval of creditors.

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Is a fixed charge on book debts valid?

Article Abstract:

In corporate insolvency cases, creditors have tried to improve their situation by creating fixed charges on the liquidated company's existing assets and future property acquisitions, especially book debts. This strategy gives the creditor a higher priority over other creditors, but the laws concerning this practice are complicated and may soon be invalidated. The use of conventional floating charges, fixed charges on after-acquired property, and the rules concerning the disposal of debt proceeds are discussed.

Priorities of claims and liens, Business failures, Great Britain

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