46Share of profits made after dissolution

46 Share of profits made after dissolution (1) Where a partner dies or otherwise ceases to be a partner and the surviving or continuing partners carry on the business of the firm with its capital or assets without any final settlement of accounts as between the firm and the outgoing partner or his or her estate, then, in the absence of an agreement to the contrary, the outgoing partner or his or her estate is entitled, at his or her option or the option of his or her representatives: (a) to the share of the profits made since the dissolution as the Supreme Court may find to be attributable to the use of his or her share of the partnership assets; or (b) to interest at the rate of 7% per annum on the amount of his or her share of the partnership assets. (2) Subsection (1) does not apply where by the partnership contract an option is given to surviving or continuing partners to purchase the interest of a deceased or outgoing partner and the option is duly exercised except where a partner assuming to act in exercise of the option does not, in all material respects, comply with the terms of

Part 3 Incorporated limited partnerships Division 1 Preliminary matters Partnership Act 1997 22 the partnership agreement.