Section 32 of Partnerships Act 16 of 2012: Former partners: indemnity and contribution, and return of property

    

(1) A partnership shall indemnify a former partner in respect of payment made by the partner to discharge the whole or part of his personal liability for a partnership obligation.
(2) An indemnity under subsection (1) shall not affect any claim which the partnership or a partner may have against the former partner.
(3) If a partnership fails to indemnify a former partner under subsection (1), the former partner may seek—
(a) indemnity from any person who was a partner at the time the partner
ceased to be a partner and who continued to be a partner after he ceased to be a partner; or
(b) contribution from any person who was also liable for the obligation.
(4) Subsection (3) shall not apply [if] the former partner ceased to be a partner on or after the break up of the partnership.
(5) A former partner shall, on request by a partnership, transfer any partnership property which is held in the former partner’s name to—
(a) the partnership; or
(b) a trustee for the partnership.


Disclaimer: This document is not to be taken as legal advise.

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