17A
In forceImproper use of trust property for incorporated limited partnership
Part 3Relations of partners to persons dealing with them
17A Improper use of trust property for incorporated limited partnership
(1)
If a general partner in an incorporated limited partnership who is a trustee improperly uses trust property in the partnership’s business, or for the partnership, the partnership and any other general partner is not liable for the trust property to the people beneficially interested in the property.
(2)
Subsection (1) does not—
(a)
affect any liability incurred by any general partner because the partner knew about a breach of trust; and
(b)
prevent trust money from being followed and recovered from the partnership if still in the possession, or under the control, of the partnership.
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