California Codes

Cal. Corporations Code § 16807 (2026)

✓ current as of May 2026

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(a)In winding up a partnership’s business, the assets of the partnership, including the contributions of the partners required by this section, shall be applied to discharge its obligations to creditors, including, to the extent permitted by law, partners who are creditors. Any surplus shall be applied to pay in cash the net amount distributable to partners in accordance with their right to distributions under subdivision (b).

(b)Each partner is entitled to a settlement of all partnership accounts upon winding up the partnership business. In settling accounts among the partners, the profits and losses that result from the liquidation of the partnership assets shall be credited and charged to the partners’ accounts. The partnership shall make a distribution to a partner in an amount equal to any excess of the credits over the charges in the partner’s account. Except for registered limited liability partnerships and foreign limited liability partnerships, a partner shall contribute to the partnership an amount equal to any excess of the charges over the credits in the partner’s account.

(c)If a partner fails to contribute the full amount that the partner is obligated to contribute under subdivision (b), all of the other partners shall contribute, in the proportions in which those partners share partnership losses, the additional amount necessary to satisfy the partnership obligations for which they are liable under Section 16306. A partner or partner’s legal representative may recover from the other partners any contributions the partner makes to the extent the amount contributed exceeds that partner’s share of the partnership obligations for which the partner is personally liable under Section 16306.

(d)After the settlement of accounts, each partner shall contribute, in the proportion in which the partner shares partnership losses, the amount necessary to satisfy partnership obligations that were not known at the time of the settlement and for which the partner is personally liable under Section 16306.

(e)The estate of a deceased partner is liable for the partner’s obligation to contribute to the partnership.

(f)An assignee for the benefit of creditors of a partnership or a partner, or a person appointed by a court to represent creditors of a partnership or a partner, may enforce a partner’s obligation to contribute to the partnership.

Notes of Decisions

Cited in 6 cases (2 in the last 5 years), 2014–2025 · leading case: Second Measure, Inc. v. Kim, 143 F. Supp. 3d 961 (N.D. Cal. 2015).

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Second Measure, Inc. v. Kim, 143 F. Supp. 3d 961 (N.D. Cal. 2015). · cites it 4× “” Cal. Corp. Code § 16807 . If Babineau had terminated the joint venture or partnership, Kim would have been entitled to a distribution based on the business’s assets and profits.”

Raicevic v. Geraci CA4/1 (Cal. Ct. App. 2015). · cites it 3× “) 13 Corporations Code section 16807 deals with the winding up of a partnership's business, stating in relevant part: "(b) Each partner is entitled to a settlement of all partnership accounts upon winding up the partnership business.”

Wickline v. Schweder CA4/1 (Cal. Ct. App. 2023). “” (Corp. Code, § 16807.) It is undisputed that there was never any attempt to undertake a winding up of the partnership between Wickline and Schweder.”

Wickline v. Schweder CA4/1 (Cal. Ct. App. 2025). “” (Corp. Code, § 16807.) Based on the governing law, if the trial court meant to rule that the partnership terminated based on Wickline’s breach of fiduciary duty, that ruling has at least two problems.”

Mobasser v. Yermian CA2/7 (Cal. Ct. App. 2014). “(Corp. Code, § 16807, subd. (b) and Corp. 20 Code, § 16401.”

Koka v. Shastri CA2/8 (Cal. Ct. App. 2015). “(Corp. Code, §§ 16807, subd. (b), 16401.) An accounting is an equitable remedy to be decided by the court, and its findings are subject to the abuse of discretion standard of review.”

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