What type of agreement may a retiring partner enter into with remaining partners?

A retiring partner typically enters into an indemnity agreement with the remaining partners. This type of agreement is important as it provides a means for the retiring partner to protect themselves from any future liabilities that may arise from actions or obligations incurred during their time in the partnership.

By entering into an indemnity agreement, the remaining partners may agree to take responsibility for certain liabilities or debts the partnership might face after the partner has retired. This is especially relevant in partnerships where ongoing obligations are associated with past decisions made when the retiring partner was still involved. This protects the retiring partner and ensures that their financial future is not negatively impacted by the partnership’s obligations after their departure.

In contrast, a new partnership agreement would typically be relevant to the remaining partners forming a framework for how they will operate going forward, but it doesn’t specifically address the retiring partner’s concern regarding liabilities. A limited power of attorney would not be appropriate here, as it pertains to granting authority to act on behalf of another rather than addressing retirement issues. Lastly, a share transfer agreement is more relevant in corporate structures, where shares in a company are transferred; this is less applicable in the context of a partnership where the focus is on the partnership's obligations and the retiring partner's protection.