Can a Partner be Expelled from a Partnership?

There is no right under the Partnership Act of 1890 to expel a partner. The only way to remove a partner is to make a provision for this in the partnership agreement, as Section 25 of the Act confirms.

It’s usual for a partnership agreement to contain a clause allowing for the expulsion of a partner. Removal typically requires a majority vote and can only occur under certain circumstances.

The Limited Liability Partnership Act 2000 governs Limited Partnerships and Limited Liability Partnerships (LLPs). The Act makes it impossible to expel a partner without an express agreement.

Partnership agreements protect the business from any partners’ rogue or unlawful behaviour. A comprehensive agreement can also cover the following scenarios:

• Retirement of a partner

• Death of a partner

• A partner wishing to leave the business

The ability and process to remove a partner depends upon the wording of the partnership agreement. Some agreements only permit expulsion if there is wrongdoing or unlawful behaviour. 

Rather than immediately looking to expel a partner it can be useful to first assess and address the reason other partners are considering taking that step. There may be other steps and remedies that can achieve similar (or better) commercial outcomes.