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Limited Partnerships Act 2008

General - Prohibited and disqualified persons

103C: Liability for contravening section 103A or 103B

You could also call this:

"Breaking rules as a general partner can make you pay the partnership's debts personally"

Illustration for Limited Partnerships Act 2008

If you act as a general partner of a limited partnership when you are not allowed to, you can be personally liable. This means you might have to pay debts that the limited partnership cannot pay, to a liquidator who is sorting out the partnership's finances. You might also have to pay a creditor who is owed money by the limited partnership, if the debt was incurred while you were acting as a general partner in contravention of section 103A or an order made under section 103B.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6252158.

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103B: Court may disqualify general partners, or

"Court can ban people from being general partners if they break the law or don't follow rules"

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103D: Registrar or FMA may prohibit persons from managing limited partnerships, or

"Authorities can stop someone from running a limited partnership if they think it's being managed poorly"

Part 2General
Prohibited and disqualified persons

103CLiability for contravening section 103A or 103B

  1. A person who acts as a general partner of a limited partnership in contravention of section 103A or an order made under section 103B is personally liable to—

  2. a liquidator of the limited partnership for every unpaid debt incurred by the limited partnership while that person was so acting; and
    1. a creditor of the limited partnership for a debt to that creditor incurred by the limited partnership while that person was so acting.

      Compare
      Notes
      • Section 103C: inserted, on , by section 30 of the Limited Partnerships Amendment Act 2014 (2014 No 47).