n SA Mercantile Law Journal = SA Tydskrif vir Handelsreg - The origins and development of the dual priorities rule in partnership insolvency
|Article Title||The origins and development of the dual priorities rule in partnership insolvency|
|© Publisher:||Juta Law Publishing|
|Journal||SA Mercantile Law Journal = SA Tydskrif vir Handelsreg|
|Publication Date||Jan 2008|
|Pages||243 - 267|
The division of the proceeds of insolvent partnerships' and partners' estates has been strongly influenced by the so-called dual priorities rule : 'Partnership estate to partnership creditors, private estate to private creditors, anything left over from either go to the other'.
As its name signifies, the dual priorities rule basically embodies two components. The first acknowledges the priority of partnership creditors on partnership assets; this will be referred to as 'entity shielding'. The second component creates a priority of private creditors on the assets in a particular partner's private estate; this will be referred to as 'owner shielding'.
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