Liabilities of incoming and outgoing partners
21 Liabilities of incoming and outgoing partners
(1) An entity does not, only because of the entity's admission as a partner in a firm other than an incorporated limited partnership, become liable for a liability incurred by the firm before the admission.
(2) An entity does not, only because of the entity's retirement as a partner in the firm, cease to be liable for a liability incurred by the firm before the retirement.
(3) An entity does not, only because of the entity's admission as a general partner in an incorporated limited partnership, become liable for a liability incurred by the partnership before the admission.
(4) An entity does not, only because of the entity's retirement as a general partner in the partnership, cease to be liable for a liability incurred by the partnership before the retirement.
(5) A retiring partner in a firm may be discharged from any existing liabilities of the firm by an agreement between:
the partner; and
the firm's creditors; and
(c) if the firm is not an incorporated limited partnership – the partners in the firm as newly constituted; and
(d) if the firm is an incorporated limited partnership – the partnership.
(6) The agreement may be expressed or inferred from the conduct of anyone referred to in subsection (5).
This Act’s bill:Second reading speech
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