Partnership Act 1963

This section applies if, by any wrongful act or omission of a general partner (the relevant partner) in an incorporated limited partnership, acting in the ordinary course of the partnership’s business, or with its authority—

loss or injury is caused to someone who is not a partner in the partnership; or

a penalty is incurred.

The incorporated limited partnership is liable in relation to the loss, injury or penalty to the same extent as the relevant partner.

For this section, a general partner in an incorporated limited partnership who commits a wrongful act or omission as a director of a company or other body (within the meaning of the Corporations Act), as a member of a territory authority, or as a member of the board (however described) of a territory authority, is not to be taken to be acting in the ordinary course of the partnership’s business, or with its authority, only because of 1 or more of the following:

the general partner obtained the agreement or authority of the partnership to be appointed or to act as director or member;

the remuneration that the general partner receives as director or member forms part of the income of the partnership;

any other general partner in the partnership is also a director of a company or other body (within the meaning of the Corporations Act), member of a territory authority, or member of the board (however described) of a territory authority, whether of the same or a different body, territory authority or board.