Short answer. At the date of dissolution. Under Article 1842, in the absence of any agreement to the contrary, a partner's right to an account of his interest accrues at the date of dissolution — as against the winding-up partners, the surviving partners, or the person or partnership continuing the business.
What the law says
The right to an account of his interest shall accrue to any partner, or his legal representative as against the winding up partners or the surviving partners or the person or partnership continuing the business, at the date of dissolution, in the absence of any agreement to the contrary.
Civil Code, Article 1842 — Right to an Account. Read the full provision →
The right accrues at dissolution
Article 1842 answers a precise question: when does a partner become entitled to a formal accounting of his interest? The answer is the date of dissolution. The right to an account of his interest shall accrue to any partner, or his legal representative... at the date of dissolution, in the absence of any agreement to the contrary. So it is dissolution that triggers the right. Before then, during the ordinary life of the partnership, a partner's information rights are governed by other rules; but once the partnership is dissolved, he — or his estate — can demand that the accounts be taken and the value of his interest determined.
Who owes you the account
The article is careful to name whom the right runs against. A partner, or his representative, is entitled to the account as against the winding up partners or the surviving partners or the person or partnership continuing the business. This covers the three situations a departing partner is likely to face. Where the firm is being wound up, the partners conducting that process owe him the account. Where partners have died and others survive, the surviving partners owe it. And where the business is being carried on by some of them, or by a new firm, whoever is continuing it owes the account.
'Unless otherwise agreed'
Like much of the partnership law on winding up, this is a default the partners can vary. The right accrues at dissolution in the absence of any agreement to the contrary, so the partners are free to fix a different time for the accounting, or a different mechanism for valuing a departing partner's interest, in their agreement. Where they have done so, that governs. Where they have not, the law supplies the answer: the account is due at dissolution.
Using the right
If you have left a partnership — or a partner whose estate you represent has — and you need to know what the interest is worth, this article tells you the claim to an accounting is already ripe: it accrued at dissolution. You do not have to wait for the others to volunteer figures. Identify who is on the hook — the winding-up partners, the survivors, or whoever continues the business — and demand the account from them. And mind the timing, since the right accrued at dissolution and any period for enforcing it runs from there.
Cases citing this provision
These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.
- Emilio Emnace vs. Court of Appeals, et al, G.R. No. 126334, November 23, 2001 — read the decision on LawPhil →