Law 3102 Pship Distribution of Funds

Law 3102 Pship Distribution of Funds - DISTRIBUTION OF...

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DISTRIBUTION OF FUNDS ON TERMINATION
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Order of Distribution If partnership and partners have sufficient funds to pay All outside creditors All amounts due to partners, including capital Then rules regarding order of distribution will not be of significance
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Order of Distribution (cont.) UPA 1. Outside creditors (i.e., other than partners) 2. Amounts owed to partners as creditors, e.g. loans, advances, payment of tort liabilities 3. Partners’ capital 4. Partners’ profit RUPA 1. Creditors, including partners 2. Amounts owed to partners
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Accounting After Dissolution After windup, each partner is entitled to an account, i.e., determination of Assets Claims of outside creditors Claims of partners Claims against partners (e.g., indemnity for breaches of duties) Capital due to be repaid Profit or loss Ultimately determining net due to or from each partner
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Accounting After Dissolution (cont’d) May be necessary for one or more
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This note was uploaded on 12/09/2011 for the course LAW 1101 taught by Professor Reed during the Spring '08 term at CUNY Baruch.

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Law 3102 Pship Distribution of Funds - DISTRIBUTION OF...

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