B7.507 Admitting a new partner
This commentary summarises the impact of a new partner joining a partnership. For details of the impact of a partner leaving a partnership see B7.508 and changes in profit sharing ratios are detailed in B7.408. Changes in partnerships as a result of a merger, demerger or conversion are detailed in B7.525 onwards.
No formal documentation is required for the admittance of a partner but usually there is a legal agreement. If the agreement states that the partner has been admitted to the partnership before the date of the document, this is not legally effective unless, as a question of fact, the partnership previously existed, so that the agreement is merely recording the reality. This is discussed in further detail
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