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Limited Partnerships Act 2008
General
Derivative actions
83: Costs of derivative action to be met by limited partnership

Part 1:
Preliminary provisions

3Purpose of Act 4Interpretation 5Act binds the Crown

Part 2:
General

Part 3:
Overseas limited partnerships

104Overseas limited partnership must register 105Meaning of carrying on business 106Validity of transactions not affected 107Application for registration 108Registration of overseas limited partnership 109Use of name by overseas limited partnership 110Notification of changes relating to overseas limited partnership 111Rectification or correction of name or address of person authorised to accept service 112Annual return of overseas limited partnership 113Overseas limited partnership ceasing to carry on business in New Zealand 114Liquidation of overseas limited partnership

Part 4:
Miscellaneous

115Confidentiality of limited partner information 116Regulations 116AValidation of fees used to recover costs of other Companies Office registers, etc 117Part 2 of Partnership Act 1908 repealed 118Orders revoked 119Companies Act 1993 amended 120Privacy Act 1993 amended 121Other consequential amendments 122Transitional provision for special partnerships

Schedule 1:
Activities that do not constitute taking part in management of limited partnership

Schedule 2:
Information to be contained in annual return

Limited Partnerships Act 2008

General - Derivative actions

83: Costs of derivative action to be met by limited partnership

You could also call this:

"Who pays the costs when a partner in a limited partnership takes legal action"

Illustration for Limited Partnerships Act 2008

If you are a partner in a limited partnership and the Court gives you permission to bring or join a lawsuit, you can ask the Court to order the limited partnership to pay some or all of the costs. The costs include things like settling the case or stopping the lawsuit, as outlined in section 85. The Court will make the limited partnership pay these costs unless it thinks it would be unfair for the partnership to pay them, considering the circumstances and the rules set out in section 82.

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This page was last updated on 30 August 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1139245.

Topics:

Business > Starting a business

82: Derivative actions, or

"When a partner can take a court case on behalf of their limited partnership"

84: Powers of Court where leave granted, or

"What the Court can do if it lets you take a case against a limited partnership"

Part 2General
Derivative actions

83Costs of derivative action to be met by limited partnership

The Court must, on the application of the partner to whom leave was granted under section 82 to bring or intervene in the proceedings, order that the whole or part of the reasonable costs of bringing or intervening in the proceedings, including any costs relating to any settlement, compromise, or discontinuance approved under section 85, must be met by the limited partnership unless the Court considers that it would be unjust or inequitable for the limited partnership to bear those costs.

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s 166