24. Cessation of partnership interest.—
(1) A person may cease to be a partner of a limited liability
partnership in accordance with an agreement with the other partners or, in the absence of agreement with
the other partners as to cessation of being a partner, by giving a notice in writing of not less than thirty
days to the other partners of his intention to resign as partner.
(2) A person shall cease to be a partner of a limited liability partnership—
(a) on his death or dissolution of the limited liability partnership; or
(b) if he is declared to be of unsound mind by a competent court; or
(c) if he has applied to be adjudged as an insolvent or declared as an insolvent.
(3) Where a person has ceased to be a partner of a limited liability partnership (hereinafter referred to
as "former partner"), the former partner is to be regarded (in relation to any person dealing with the
limited liability partnership) as still being a partner of the limited liability partnership unless—
(a) the person has notice that the former partner has ceased to be a partner of the limited liability
partnership; or
(b) notice that the former partner has ceased to be a partner of the limited liability partnership has
been delivered to the Registrar.
1. Subs. by Act 31 of 2021, s. 10, for sub-section
(2) (w.e.f. 1-4-2022).
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(4) The cessation of a partner from the limited liability partnership does not by itself discharge the
partner from any obligation to the limited liability partnership or to the other partners or to any other
person which he incurred while being a partner.
(5) Where a partner of a limited liability partnership ceases to be a partner, unless otherwise provided
in the limited liability partnership agreement, the former partner or a person entitled to his share in
consequence of the death or insolvency of the former partner, shall be entitled to receive from the limited
liability partnership—
(a) an amount equal to the capital contribution of the former partner actually made to the limited
liability partnership; and
(b) his right to share in the accumulated profits of the limited liability partnership, after the
deduction of accumulated losses of the limited liability partnership, determined as at the date the
former partner ceased to be a partner.
(6) A former partner or a person entitled to his share in consequence of the death or insolvency of the
former partner shall not have any right to interfere in the management of the limited liability partnership.
