PARTNERSHIP
CHAPTER 46:04PARTNERSHIP ARRANGEMENT OF SECTIONS SECTION PART IPRELIMINARY 1. Short title 2. Interpretation PART IINATURE OF PARTNERSHIP 3. Definition of a partnership 4. Rules for determining existence of partnership 5. Postponement of rights of person lending or selling in consideration of share of profits in case of insolvency 6. Meaning of firm PART IIIRELATIONS OF PARTNERS TO PERSONS DEALING WITH THEM 7. Power of partner to bind the firm 8. Partners bound by acts on behalf of firm 9. Partner using credit of firm for private purposes 10. Effect of notice that firm will not be bound by acts of partner 11. Liability of partners 12. Liability of the firm for wrongs 13. Misapplication of money or property received for or in custody of the firm 14. Liability for wrongs joint and several 15. Improper employment of trust property for partnership purposes 16. Persons liable by ‘‘holding out” 17. Admissions and representations of partners 18. Notice to acting partner to be notice to the firm 19. Liabilities of incoming and outgoing partners 20. Revocation of continuing guarantee by change of firm PART IVRELATIONS OF PARTNERS TO ONE ANOTHER 21. Variation by consent of terms of partnership 22. Partnership property 23. Property bought with partnership money 24. Conversion into personal estate of land held as partnership property 25. Procedure against partnership property for a partner’s separate judgment debt 26. Rules as to interests and duties of partners subject to special agreement 27. Expulsion of partner 28. Retirement from partnership at will 29. Where partnership for term is continued over, continuance on old terms presumed 30. Duty of partners to render accounts, etc. 31. Accountability of partners for private profits 32. Duty of partner not to compete with firm 33. Rights of assignee of share in partnership PART VDISSOLUTION OF PARTNERSHIP AND ITS CONSEQUENCIES 34. Dissolution by expiration or notice 35. Dissolution by bankruptcy, death, charge or subjection to forfeiture 36. Dissolution by illegality of partnership 37. Dissolution by the Court 38. Rights of person dealing with firm against apparent members of firm 39. Right of partners to notify dissolution 40. Continuing authority of partners for purposes of winding up 41. Rights of partners as to application of partnership property 42. Apportionment of premium where partnership prematurely dissolved 43. Rights where partnership dissolved for fraud or misrepresentation 44. Right of outgoing partner in certain cases to share profits made after dissolution 45. Retiring or deceased partner’s share to be a debt 46. Rule for distribution of assets on final settlement of accounts 47. Saving for rules of equity and common law 4 of 1969 An Act relating to partnerships and matters incidental thereto and connected therewith PART IPRELIMINARY 1. Short title This Act may be cited as the Partnership Act. 2. Interpretation In this Act, unless the context otherwise requires— ‘‘business’’ includes every trade, occupation or profession; ‘‘Court’’ means the High Court. PART IINATURE OF PARTNERSHIP 3. Definition of a partnership (1) Partnership is the relation which subsists between persons carrying on business in common with a view to profit. (2) The relation between members of any company or association which is— (a) registered as a company under any written law for the time being in force in Malawi rating to the registration of joint stock companies; or (b) formed or incorporated by or in pursuance of any other written law, letters patent or Royal Charter; is not a partnership within the meaning of this Act. 4. Rules for determining existence of partnership In determining whether a partnership does or does not exist,regard shall be had to the following rules— (a) joint tenancy, tenancy in common, joint property, common property, or part ownership does not of itself create a partnership as to anything so held or owned, whether the tenants or owners do or do not share any profits made by the use thereof; (b) the sharing of gross returns does not of itself create a partnership, whether the persons sharing such returns have or have not a joint or common right or interest in any property from which or from the use of which the returns are derived; (c) the receipt by a person of a share of the profits of a business is prima facie evidence that he is a partner in the business, but receipt of such a share, or of a payment contingent on or varying with the profits of a business, does not of itself make him a partner in the business; and in particular— (i) the receipt by a person of a debt or other liquidated amount by instalments or otherwise out of the accruing profits of a business does not of itself make him a partner in the business or liable as such; (ii) a contract for the remuneration of a servant or agent of…