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Adding or Removing a Partner

A partner who leaves without proper notice can remain liable for what the firm does afterwards. That is the part people do not expect.

The liability that follows you out

A retiring partner remains liable for the firm's obligations incurred before they left. That much is expected. What surprises people is that they can also remain liable for what happens after they leave, if the outside world was never told they had gone.

Public notice of retirement is what stops that clock. Without it, a supplier who dealt with the firm on the strength of your name can still hold you to arrangements made after your departure.

So the paperwork here is not administrative tidiness. It is what ends your exposure.

What has to happen

1

Agree the terms

Valuation of the outgoing partner's share, how and when it is paid, and what happens to any guarantees they gave.

2

Execute a supplementary deed

Recording the reconstituted firm, the new profit shares and the new capital position.

3

Give public notice of retirement

This is the step that ends the retiring partner's forward liability. Do not skip it.

4

Update the firm's registration

Where the firm is registered, the change is recorded with the Registrar of Firms.

5

Update everything else

Bank mandates, GST authorised signatory, licences, and any contract that names the partners. A departed partner still on a bank mandate can still operate the account.

Written 5 September 2026. Government requirements and portal behaviour change — message us to confirm before you rely on any date or figure here.

Common questions

Then their position is unclear and so is yours. Document it now and give notice — it does not fix the gap retrospectively but it stops it growing.

By whatever the deed says. If the deed is silent, this is where disputes start, which is why the exit clause matters when the deed is drafted.

Only if the deed provides for it. Without such a clause, it is difficult, and that is another gap a good deed prevents.

A reconstituted firm generally continues, but the position depends on the facts. Tell us the details and we will confirm rather than generalise.

Send us your case

Tell us who is joining or leaving and when. If someone has already left undocumented, say so - that changes the priority.

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