Section 763 CAMA 2020
Section 763 Companies and Allied Matters Act is about Cessation of partnership interest. It is under Chapter 3 (Partners and their relations) of the Act.
(1) A person may cease to be a partner of a limited liability partnership in accordance with an agreement with the other partners or, in the absence of agreement with the other partners as to cessation of being a partner,by giving a notice in writing of at least 30 days to the other partners of his intention to resign as partner.
(2) A person shall cease to be a partner of a limited liability partnership—
(a) on his death or dissolution of the limited liability partnership ; or
(b) if he is declared to be of unsound mind by a competent court ; or
(c) if he has applied to be adjudged or declared as an insolvent.
(3) Where a person has ceased to be a partner of a limited liability partnership (in this Act referred to as “former partner”), the former partner isto be regarded, in relation to any person dealing with the limited liability partnership as still being a partner of the limited liability partnership unless—
(a) the person has notice that the former partner has ceased to be a partner of the limited liability partnership ; or
(b) notice that the former partner has ceased to be a partner of the limited liability partnership has been delivered to the Commission.
(4) The cessation of a partner from the limited liability partnership does not by itself discharge the partner from any obligation to the limited liability partnership, the other partners or any other person which he incurred while being a partner.
(5) Where a partner of a limited liability partnership ceases to be a partner, unless otherwise provided in the limited liability partnership agreement,the former partner or a person entitled to his share as a result of death or insolvency of the former partner, is entitled to receive from the limited liability partnership—
(a) an amount equal to the capital contribution the former partner actuallymade to the limited liability partnership ; and
(b) his right to share in the accumulated profits of the limited liability partnership, after the deduction of accumulated losses of the limited liability partnership, determined as at the date the former partner ceased to be a partner.
(6) A former partner or a person entitled to his share as a result of death or insolvency of the former partner shall not have any right to interfere in the management of the limited liability partnership.
