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  1. #1
    Join Date
    Mar 2012
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    2

    Default Is a Partnership Automatically Dissolved when One Member Leaves

    My question involves business law in the state of: California

    we have a general partnership of 5 members (music band). One member decided to leave the band, which also means he leaves the partnerships as well.
    When we tried to remove him from our bank account they told us that he can't be removed, that we have to close the account.
    So that means that we have to close the partnership and start a new one with the remaining members? Is there a way to remove a partner and maintain the partnership?

    Thanks!

  2. #2
    Join Date
    Sep 2005
    Location
    California
    Posts
    65,024

    Default Re: Is a Partnership Automatically Dissolved when One Member Leaves

    You're not talking about partnership law. You're talking about a bank's policy.

    If you have a partnership agreement that includes the person who left, it would make sense to revise it to include only the four remaining partners, but you've told us nothing about the formalities of your partnership.

  3. #3
    Join Date
    Mar 2012
    Posts
    2

    Default Re: Is a Partnership Automatically Dissolved when One Member Leaves

    Thanks Mr. Knowitall for your answer, we have a clause that says that the partner can be excluded if voted so from the partnership from the other remaining members, also some clauses as to what happens financially when a partner decides to leave.
    A bank policy may very well affect us how we rearrange our partnership, we cannot conduct business properly if we cannot open a bank account.

    So writing a new revision to the partnership agreement should do, right? What about the DBA, where the partner that left is on?

    Thanks!

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