Sharing surplus or shortfall between partners
If money is left after paying debts, how is it split between partners?
The situation
Surplus goes to partners according to their profit shares, and any shortfall is shared in the same ratio.
The law
- Commercial Companies Law: dissolution and liquidation: Partners resolve to dissolve, appoint a liquidator, publish notice, settle debts, then the CR is cancelled
What it means for you
Example: surplus BHD 30,000 with partners holding 60% and 40% gives BHD 18,000 and BHD 12,000. If the memorandum sets a different profit sharing ratio, that ratio applies. Pay only after all creditors and staff are settled.
What to do
- Confirm all debts are paid.
- Compute the surplus.
- Split by profit shares.
- Record payments.
We can do this for youVoluntary liquidation and CR cancellation: BHD 1,500