Full legislation
s.40
Continuing authority of partners for purposes of winding-up
40.
Continuing authority of partners for purposes of winding-up
After the dissolution of a partnership, the authority of each partner to bind the
firm, and the
other rights and obligations of the partners, continue, notwithstanding the dissolution,
so far as may be necessary to wind up the affairs of the partnership, and to complete
transactions begun but unfinished at the time of the dissolution, but not
otherwise:
Provided that the firm is in no case bound by the acts of a partner who has become bankrupt; but this proviso does not affect the liability of any person who has, after the bankruptcy, represented himself or knowingly suffered himself to be represented as a partner of the bankrupt.