Is a partner in a general partnership required to disclose information to all partners prior to the sale of partnership interests?
Ontario, Canada
The following excerpt is from Merklinger v. Jantree No. 3 Limited Partnership & Snapdragon Ltd., 2004 CanLII 54553 (ON SC):
In Tzembelicos v. Tzembelicos,[46] Ground J. discussed the duty of a partner in a general partnership to disclose information to the other partners prior to the sale of partnership interests. He stated: I am of the view that the provisions of the Partnership Act and the common law fiduciary duty among partners requires the disclosure of any transaction, agreement or understanding affecting the partnership, the partnership business or the partnership property and extends to any agreement relating to a partner selling or purchasing a partnership interest within the partnership.
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