How Might a Partner Withdrawing in Violation of the Partnership

question 33

Essay

How might a partner withdrawing in violation of the partnership agreement and without the con-sent of the other partners be treated? What about a partner who is forced to withdraw?
Business Ethics Question from Textbook
Many companies with defined benefit plans are curtailing or eliminating the plans altogether.With a defined benefit plan, the company guarantees some set amount(or formula-determined payment) when the employee retires.Because most pension assets are invested in the stock market, whether a pension plan is fully funded of-ten depends on the strength of the stock market.Be-cause of this volatility, companies often find themselves unexpectedly in a position where they must either in-crease funding or disclose significant underfunding.Because of this, many companies simply reduce or eliminate the plan.Consider the pension plan of Golden Years Company (GYC).Historically, GYC has been a great company to work for, with strong employee benefits.GYC's pension liability is approximately $15 million.However, recently the company has been experiencing minor financial troubles in a decreasing stock market and, consequently, announced the termination of the pension plan in an effort to save costs.However, the pension plan was fully funded by$9 million (the fair value of assets exceeded the expected liability).

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