Dissolution by bankruptcy, death, or charge - s.33 PA 1890
Automatic dissolution of partnership on death or bankruptcy of any partner; optional dissolution if share charged for separate debt – PA 1890 s.33
Subject to any agreement between the partners, every partnership is dissolved as regards all the partners by the death or bankruptcy of any partner. A partnership may, at the option of the other partners, be dissolved if any partner suffers his share of the partnership property to be charged under this Act for his separate debt.
Text in force at .
Source: legislation.gov.uk — The National Archives (legislation.gov.uk), reproduced under licence Open Government Licence v3.0.
What it actually says
Unless the partners have agreed otherwise, the death or bankruptcy of any partner automatically ends the partnership for all partners. This happens immediately, with no further decision needed.
If a partner lets his share of the partnership property be charged under this Act for a debt that is only his own, the other partners have a choice. They may decide to dissolve the partnership, but they are not required to.
The words 'subject to any agreement' mean that if the partners have a written or oral understanding that death or bankruptcy should not dissolve the partnership, that agreement will override the automatic rule.
When it applies
- A partner dies and there is no agreement to the contrary, so the partnership is automatically dissolved the moment of death.
- A partner is declared bankrupt by a court, and the partnership ends for all partners without any vote or notice.
- A creditor of one partner obtains a court order charging that partner's share in the partnership property. The other partners then meet and decide to dissolve the partnership.
What this section does not say
- That the partnership always ends on death regardless of any agreement – but the provision says 'subject to any agreement', so a contrary agreement can keep it going.
- That a charge on a partner's share automatically dissolves the partnership – it only gives the other partners the option to dissolve.
- That the provision covers retirement or expulsion – those are dealt with separately in sections 25 and 26.
- That bankruptcy of a partner only affects that partner's share – it dissolves the partnership as regards all partners.
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This page reproduces the text of PA 1890 s. 33 in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in England and Wales.