Accounting when other partners committing fraud

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Accounting:  when other partner(s) committing fraud, embezzlement, wrongful  exclusion, or anytime it is just and reasonable  Property Rights Property acquired by the partnership remains partnership property.  An individual partner has no right to sell, mortgage, or transfer partnership property.   However, creditor of individual partner can petition a court for a charging order to attach  to individual partner’s property interest. Use or possess property on behalf of the partnership. Assign her right to her share of the profits to another to satisfy individual debt. What are the rights and duties of the partners?  Fiduciary Duties .    Partners are fiduciaries and general agents of one another and the  partnership.  Authority of Partners. UPA affirms general principles of agency law. Partner may be able to subject partnership to tort liability. Partner has apparent authority when carrying out partnership business.  Scope of implied powers Authorized versus Unauthorized Actions.  If partner acts within scope of authority  partnership is bound.  Partners generally do not have authority to make charitable  contributions
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What is the liability of the partners? Liability of Partners-  If partner is sued for Partnership debt, Partner has right to insist  that other partners be sued with her Joint Liability-  3 rd  party must sue ALL partners as a group but each partner can be  held liable for the full amount Joint and Several Liability:  3 rd  party can sue either one or all partners.  3 rd  party may  collect against personal assets of all partners Liability of incoming Partner:  new admitted partner has no personal How does a partner disassociate? Occurs when one partner ceases to be associated in the partnership business Allows partner to have her interest purchased by the partnership Terminates her voting interest in the partnership Events Causing Dissociation: Notice Triggering Event Unanimous Vot Court or Arbitraor Order Partner’s bankruptcy, assignment of interest, incapacity or death Wrongful Dissociation Dissociating partner breaches partnership agreement  Dissociating partner files bankruptcy May be liable for costs Effects of Dissociation: rights and duties Liability to 3 rd   Parties- partnership bound for two years by acts of outgoing partner,  unless proper notice given How does the partnership terminate? The Termination of a Partnership Occurs in Two Stages Dissolution (is the legal “death” of the partnership
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Winding up and Distribution of Assets (collecting and distributin partnership assets) Dissolution:  by operation of law or judicial decree Partners can Agreen to Disolve
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