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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Retiring partner followup
Sir please check that is this correct about retiring partner:
Retiring partner is unlimitedly liable for decision taken uptill his retirement.
He will also be unlimitedly liable for decision taken after his retirement Unless he gives notification to 3rd party for his resignation.
However, if novation agreement is signed then retiring partner liability will be removed and new partner will be liable for the debt even though it was incurred before he became a partner.
Correct … and when the partner retires and a new partner signs a novation, notice is given to all the firm’s creditors and any one of them that objects may ask to be paid straight away
OK?