Partnership Act 1961 (Act 135) [As at 20th August 2022]

Partnership Act 1961 (Act 135)

[As at 20th August 2022]

An Act relating to partnership.

Detailed Contents of Partnership Act 1961 (Act 135) :

Malaysian law, known as the Partnership Act 1961 (Act 135), regulates the establishment, administration, and dissolution of partnerships there. The Act outlines the rights and obligations of partners as well as their duties to one another and to other parties. It also provides a framework for the formation and regulation of partnerships.

A partnership is defined by the Act as a company run by two or more people with the intention of profiting from it. Although it is advised that partners have a formal agreement outlining the terms and circumstances of their partnership, partnerships can be created with or without a written agreement.

The rights and obligations of partners in a partnership are outlined in the Act. Unless otherwise agreed, partners are jointly and severally accountable for the partnership's debts and responsibilities and are required to split business earnings and losses equally. Also, each partner has the power to bind the partnership in agreements and transactions with third parties.

The Partnership Act of 1961 also outlines the steps to dissolve a partnership. An agreement between the partners, a court ruling, or the operation of law can all dissolve a partnership. The assets of the partnership must be divided among the partners in accordance with their rights and obligations after dissolution, and the partnership must be wound up.

In addition to the Partnership Act of 1961, regulations also offer further instructions on how partnerships should be run in Malaysia. The regulations address a variety of subjects, such as the registration of partnerships, what is included in partnership agreements, and how partnership records can be inspected.

Generally, Malaysia's partnership establishment, administration, and dissolution are governed by the Partnership Act 1961 and its implementing rules. The Act and its provisions are designed to make sure that partnerships operate honestly and openly, and that partners are aware of their responsibilities both to one another and to third parties. To make sure they continue to be applicable and successful in achieving their goals, the Act and regulations are periodically reviewed and modified.

Find more statutes like Partnership Act 1961 (Act 135) : Statutes