There is an error.
A subpartnership is a form of partnership where a partner and a nonpartner jointly share the profits and losses of a business without establishing a legal partnership. It involves an agreement between a partner and a nonpartner, such as when a partner in a law firm brings in a client and shares the profits with a nonpartner who assisted in the case. Although the nonpartner is not officially part of the law firm, they still receive a portion of the profits from that specific case. This type of partnership differs from a general partnership or a limited partnership, where all partners are legally obligated to each other and share in the profits and losses of the entire business.
A subpartnership is a legal arrangement where a partner in a partnership assigns a portion of their interest to another person or entity, creating a new partnership within the existing partnership.
In a regular partnership, all partners have equal rights and responsibilities. In a subpartnership, the subpartner has a separate agreement with the assigning partner and may have different rights and responsibilities than the other partners.
Yes, a subpartner can have liability for the partnership’s debts, just like any other partner. However, the extent of their liability may be limited based on the terms of the subpartnership agreement.
A subpartnership is formed through a written agreement between the assigning partner and the subpartner. This agreement outlines the terms of the subpartnership, including the assigned interest, rights, and obligations.
The level of participation in partnership decision-making by a subpartner depends on the terms of the subpartnership agreement. They may have limited or full decision-making authority, as agreed upon between the parties.
Generally, a subpartner cannot transfer their interest in the subpartnership without the consent of the assigning partner and other partners in the main partnership. The subpartnership agreement should specify the conditions under which such transfers are allowed.
Yes, a subpartner can be expelled from the subpartnership if the subpartnership agreement allows for it. The grounds for expulsion and the process to be followed should be clearly outlined in the agreement.
A subpartner typically does not have the authority to unilaterally dissolve the subpartnership. The agreement should specify the conditions under which the subpartnership can be dissolved, which may require the consent of the assigning partner and other partners.
Generally, a subpartner is not personally liable for the actions of the other partners in the main partnership. However, if the subpartner participates in or authorizes wrongful actions, they may be held personally liable for their own actions.
Becoming a full partner in the main partnership would require the consent of all existing partners. The subpartner would need to negotiate and enter into a new partnership agreement with the other partners to become a full member of the main partnership.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/subpartnership/
- Modern Language Association (MLA):Subpartnership. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/subpartnership/.
- Chicago Manual of Style (CMS):Subpartnership. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/subpartnership/ (accessed: May 09 2024).
- American Psychological Association (APA):Subpartnership. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/subpartnership/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts