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  • William Kanaan

Court rules on principles of partnership asset distribution

The Court of Appeal has overturned a previous decision by the High Court following a dispute over the distribution of partnership assets following dissolution.

 

A partnership that had accumulated a valuable property portfolio was the center of an acrimonious dispute between the parties, who disagreed over the division of the partnership’s assets.

 

In the first instance, the High Court ordered that the partnership assets should be transferred in specie from Partner A to Partner B to repay sums owed to the partnership, contrary to the normal practice of ascertaining the value of partnership assets through sale on the open market.

 

Partner A argued that there was no justification for that approach, as the shares in the partnership were held equally and there were no exceptional circumstances that would justify a departure from an order for sale.

 

The Court of Appeal agreed, overturning the High Court decision and directed that the properties should be sold at auction.

 

 


 

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