If a partner goes crazy, the partnership company can be dissolved on the petition of other partners. The company is not automatically dissolved on the folly of a partner. The court will only act on the petition of a partner who is not crazy himself. The company`s accounts are billed in the following order – Each profit/loss is transferred to the partners in the profit participation rate they agreed in the partnership agreement. If a partner is guilty of misconduct, the other partners can move the court for the dissolution of the business. A partner`s misbehaviour has a bad name for the company and affects the company`s reputation. Misconduct can be in business or in some other way. If a partner is imprisoned for committing a theft, it will also affect the good reputation of the company, even if it has nothing to do with the company. A general dissolution is the total dissolution of the partnership – z.B.

after the end of trade, bankruptcy or death of a partner, or by agreement – see paragraph 53.83. The general dissolution involves the dissolution of the partnership and the assumption and settlement of the accounts (see item 53.146). Partnership agreements (see Part 3) sometimes contain clauses under which a surviving partner (solvent) can acquire the stock of the incuri s partner at a pre-agreed price in the event of a breakdown of a partnership. In the case of creditor fraud, the court may order the sale of the company`s assets to ensure that creditors are not disadvantaged [Note 20]. Such a challenge would constitute an inconvenient recovery and the recommendations of Chapter 31.4B can be followed. Subsequently, a partnership company cannot engage in any commercial activity with anyone. It can only dispose of the assets of the company to realize the amount, pay the company`s debts and meet the requirements of the partners. The dissolution of a partnership business is different from the dissolution of a partnership.

In the first case, the company terminates its name and therefore will not be able to do business in the future. However, in the event of a breakdown of a partnership, the existing partnership is broken – by agreement or after a particular event, but the company can maintain its existence if the remaining partners enter into a new partnership agreement.