178.15(1)
(1) Each partner shall be repaid that partner's contributions, whether by way of capital or advances to the partnership property and share equally in the profits and surplus remaining after all liabilities, including those to partners, are satisfied; and, except as provided in
s. 178.12 (2), each partner must contribute towards the losses, whether of capital or otherwise, sustained by the partnership according to that partner's share in the profits.
178.15(2)
(2) The partnership must indemnify every partner in respect of payments made and personal liabilities reasonably incurred by him or her in the ordinary and proper conduct of the partnership's business, or for the preservation of the partnership's business or property.
178.15(3)
(3) A partner, who in aid of the partnership makes any payment or advance beyond the amount of capital which he or she agreed to contribute, shall be paid interest from the date of the payment or advance.
178.15(4)
(4) A partner shall receive interest on the capital contributed by him or her only from the date when repayment should be made.
178.15(5)
(5) All partners have equal rights in the management and conduct of the partnership business.
178.15(6)
(6) No partner is entitled to remuneration for acting in the partnership business, except that a surviving partner is entitled to reasonable compensation for his or her services in winding up the partnership affairs.
178.15(7)
(7) No person can become a member of a partnership without the consent of all the partners.
178.15(8)
(8) Any difference arising as to ordinary matters connected with the partnership business may be decided by a majority of the partners; but no act in contravention of any agreement between the partners may be done rightfully without the consent of all the partners.
178.15 History
History: 1993 a. 482;
1995 a. 97.
178.15 Annotation
Sub. (6) allows extra compensation only when a partnership is dissolved due to the death of a partner and there is a surviving partner. It did not apply when a partner's decision to retire dissolved the partnership, but the business of the partnership had not been wound up at the time of the retiring partner's death 6 months later. Estate of Matteson v. Matteson,
2008 WI 48,
309 Wis. 2d 311,
749 N.W.2d 557,
05-2607.
178.15 Annotation
Under the default rules set forth in ch. 178, there is only one exception to the general rule that no partner is entitled to remuneration for acting in the partnership business. A partner is entitled to extra compensation if he or she is a "surviving partner" under sub. (6). Wisconsin courts have strictly construed the term "surviving partner" to apply only to those partners who have survived another partner's death. Bushard v. Reisman,
2011 WI 51,
334 Wis. 2d 571,
800 N.W.2d 373,
09-0438.
178.16
178.16
Partnership books. The partnership books shall be kept, subject to any agreement between the partners, at the principal place of business of the partnership, and every partner shall at all times have access to and may inspect and copy any of them.
178.17
178.17
Partners must render information. Partners shall render on demand true and full information of all things affecting the partnership to any partner or the legal representative of any deceased partner or partner under legal disability.
178.18
178.18
Partner accountable as fiduciary. 178.18(1)
(1) Every partner must account to the partnership for any benefit, and hold as trustee for it any profits derived by him or her without the consent of the other partners from any transaction connected with the formation, conduct, or liquidation of the partnership or from any use by him or her of partnership property.
178.18(2)
(2) This section applies also to the representatives of a deceased partner engaged in the liquidation of the affairs of the partnership as the personal representatives of the last surviving partner.
178.18 History
History: 1993 a. 482.
178.19
178.19
Right to an account. Any partner shall have the right to a formal account as to partnership affairs in any of the following circumstances:
178.19(1)
(1) If that partner is wrongfully excluded from the partnership business or possession of its property by his or her copartners.
178.19(2)
(2) If the right exists under the terms of any agreement.
178.19(4)
(4) If other circumstances render it just and reasonable.
178.19 History
History: 1993 a. 482.
178.20
178.20
After fixed term partnership continues as partnership at will. 178.20(1)(1) When a partnership for a fixed term or particular undertaking is continued after the termination of such term or particular undertaking without any express agreement, the rights and duties of the partners remain the same as they were at such termination, so far as is consistent with a partnership at will.
178.20(2)
(2) A continuation of the business by the partners or such of them as habitually acted therein during the term, without any settlement or liquidation of the partnership affairs, is prima facie evidence of a continuation of the partnership.
178.21
178.21
Property rights of partner. 178.21(1)
(1) The property rights of a partner are that partner's rights in specific partnership property, that partner's interest in the partnership, and his or her right to participate in the management.
178.21(2)
(2) A partner is co-owner with the other partners of specific partnership property holding as a tenant in partnership.
178.21(3)
(3) The incidents of this tenancy are such that:
178.21(3)(a)
(a) A partner, subject to the provisions of this chapter and to any agreement between the partners, has an equal right with the other partners to possess specific partnership property for partnership purposes; but a partner has no right to possess such property for any other purpose without the consent of the other partners.
178.21(3)(b)
(b) A partner's right in specific partnership property is not assignable except in connection with the assignment of the rights of all the partners in the same property.
178.21(3)(c)
(c) A partner's right in specific partnership property is not subject to attachment or execution, except on a claim against the partnership. When partnership property is attached for a partnership debt the partners, or any of them, or the representatives of a deceased partner, cannot claim any right under the homestead or exemption laws.
178.21(3)(d)
(d) On the death of a partner the partner's right in specific partnership property vests in the surviving partner or partners, except where the deceased was the last surviving partner, when the partner's right in such property vests in the partner's legal representative. Such surviving partner or partners, or the legal representative of the last surviving partner, has no right to possess the partnership property for any but a partnership purpose.
178.21(3)(e)
(e) A partner's right in specific partnership property is not subject to elective rights under
s. 861.02 (1) of a surviving spouse or to allowances to a surviving spouse, heirs, or next of kin.
178.21 Note
NOTE: As to sub. (3) (e), see notes in
1985 Wis. Act 37, marital property trailer bill.
178.22
178.22
Partner's interest in partnership. A partner's interest in the partnership is the partner's share of the profits and surplus, and the same is personal property.
178.22 History
History: 1993 a. 482.
178.23
178.23
Assignment of partner's interest. 178.23(1)
(1) A conveyance by a partner of the partner's interest in the partnership does not of itself dissolve the partnership, nor, as against the other partners in the absence of agreement, entitle the assignee, during the continuance of the partnership, to interfere in the management or administration of the partnership business or affairs, or to require any information or account of partnership transactions, or to inspect the partnership books; but it merely entitles the assignee to receive in accordance with the assignee's contract the profits to which the assigning partner would otherwise be entitled.
178.23(2)
(2) In case of a dissolution of the partnership, the assignee is entitled to receive the assignor's interest and may require an account from the date only of the last account agreed to by all the partners.
178.23 History
History: 1993 a. 482.
178.23 Annotation
A partner's interest in partnership property is assignable by inter vivos gift, provided the elements of such a gift are established. Estate of Schreiber,
68 Wis. 2d 135,
227 N.W.2d 917 (1992).
178.24
178.24
Partner's interest chargeable as such with judgment lien. 178.24(1)(1) On due application to a competent court by any judgment creditor of a partner, the court which entered the judgment, order or decree, or any other court, may charge the interest of the debtor partner with payment of the unsatisfied amount of such judgment debt with interest thereon; and may then or later appoint a receiver of the debtor partner's share of the profits, and of any other money due or to fall due to the debtor partner in respect to the partnership, and make all other orders, directions, accounts and inquiries which the debtor partner might have made, or which the circumstances of the case may require.
178.24(2)
(2) The interest charged may be redeemed at any time before foreclosure, or in case of a sale being directed by the court may be purchased without thereby causing a dissolution:
178.24(2)(a)
(a) With separate property, by any one or more of the partners; or
178.24(2)(b)
(b) With partnership property, by any one or more of the partners with the consent of all the partners whose interests are not so charged or sold.
178.24(3)
(3) Nothing in this chapter shall be held to deprive a partner of the partner's right, if any, under the exemption laws, as regards the partner's interest in the partnership.
178.24 History
History: 1993 a. 482;
1999 a. 83.
178.25
178.25
Dissolution of partnership defined. 178.25(1)
(1) The dissolution of a partnership is the change in the relation of the partners caused by any partner ceasing to be associated in the carrying on as distinguished from the winding up of the business.
178.25(2)
(2) On dissolution the partnership is not terminated, but continues until the winding up of partnership affairs is completed.
178.26
178.26
Causes of dissolution. Dissolution is caused:
178.26(1)
(1) Without violation of the agreement between the partners (a) by the termination of the definite term or particular undertaking specified in the agreement, (b) by the express will of any partner when no definite term or particular undertaking is specified, (c) by the express will of all the partners who have not assigned their interests or suffered them to be charged for their separate debts, either before or after the termination of any specified term or particular undertaking, (d) by the expulsion of any partner from the business bona fide in accordance with such a power conferred by the agreement between the partners;
178.26(2)
(2) In contravention of the agreement between the partners, where the circumstances do not permit a dissolution under any other provision of this section, by the express will of any partner at any time;
178.26(3)
(3) By any event which makes it unlawful for the business of the partnership to be carried on or for the members to carry it on in partnership;
178.26(5)
(5) By the bankruptcy of any partner or the partnership;
178.27
178.27
Dissolution by decree of court. 178.27(1)
(1) On application by or for a partner the court shall decree a dissolution whenever any of the following applies:
178.27(1)(a)
(a) A partner has been declared a lunatic in any judicial proceeding or is shown to be of unsound mind.
178.27(1)(b)
(b) A partner becomes in any other way incapable of performing the partner's part of the partnership contract.
178.27(1)(c)
(c) A partner has been guilty of such conduct as tends to affect prejudicially the carrying on of the business.
178.27(1)(d)
(d) A partner willfully or persistently commits a breach of the partnership agreement, or otherwise so conducts himself or herself in matters relating to the partnership business that it is not reasonably practicable to carry on the business in partnership with him or her.
178.27(1)(e)
(e) The business of the partnership can only be carried on at a loss.
178.27(1)(f)
(f) Other circumstances render a dissolution equitable.
178.27(2)(a)
(a) After the termination of the specified term or particular undertaking;
178.27(2)(b)
(b) At any time if the partnership was a partnership at will when the interest was assigned or when the charging order was issued.
178.27(3)
(3) Upon application by a district attorney or the attorney general, the court shall decree a dissolution if the partnership has violated
s. 940.302 (2) or
948.051 (2).
178.27 History
History: 1993 a. 482;
2007 a. 116.
178.28
178.28
Dissolution terminates agency of partner. Except so far as may be necessary to wind up partnership affairs or to complete transactions begun but not then finished, dissolution terminates all authority of any partner to act for the partnership, with respect to the partners, when the dissolution is not by the act, bankruptcy or death of a partner; or when the dissolution is by such act, bankruptcy or death of a partner, in cases where
s. 178.29 so requires, and with respect to persons not partners, as declared in
s. 178.30.
178.29
178.29
Liability of dissolving partner to partners continues until knowledge of dissolution. If a dissolution is caused by the act, death or bankruptcy of a partner, each partner is liable to the other copartners for the partner's share of any liability created by any partner acting for the partnership as if the partnership had not been dissolved unless any of the following applies:
178.29(1)
(1) The dissolution being by act of any partner, the partner acting for the partnership had knowledge of the dissolution.
178.29(2)
(2) The dissolution being by the death or bankruptcy of a partner, the partner acting for the partnership had knowledge or notice of the death or bankruptcy.
178.29(3)
(3) The liability is for a debt, obligation or liability for which the partner is not liable as provided in
s. 178.12 (2).
178.29 History
History: 1993 a. 482;
1995 a. 97.
178.30
178.30
Partner's agency after dissolution. 178.30(1)
(1) After dissolution a partner can bind the partnership except as provided in
sub. (3):
178.30(1)(a)
(a) By any act appropriate for winding up partnership affairs or completing transactions unfinished at dissolution.
178.30(1)(b)
(b) By any transaction that would bind the partnership if dissolution had not taken place, provided the other party to the transaction:
178.30(1)(b)1.
1. Had extended credit to the partnership prior to dissolution and had no knowledge or notice of the dissolution; or
178.30(1)(b)2.
2. Though he had not so extended credit, had nevertheless known of the partnership prior to dissolution and, having no knowledge or notice of dissolution, the fact of dissolution had not been advertised in a newspaper of general circulation in the place (or in each place if more than one) at which the partnership business was regularly carried on.
178.30(2)
(2) The liability of a partner under
sub. (1) (b) shall be satisfied out of partnership assets alone when such partner had been prior to dissolution:
178.30(2)(a)
(a) Unknown as a partner to the persons with whom the contract is made; and
178.30(2)(b)
(b) So far unknown and inactive in partnership affairs that the business reputation of the partnership could not be said to have been in any degree due to the partner's connection with it.
