Partnership Law Act 2019

Relationship of partners to third persons and to each other - Relationship of partners to third persons

25: Liability for wrongful acts or omissions is joint and several

You could also call this:

"Partners can be held responsible together or alone for their business's wrongdoings"

If you are a partner in a business, you need to know that you can be held responsible for certain things that your business does wrong. This responsibility is shared with your other partners, but you can also be held responsible on your own. This means that if your business does something wrong while you are a partner, you might have to pay for it or face other consequences. The wrong things that your business might do are described in other parts of the law. It's important to understand that being a partner means you share the risks of the business with others, but you can also be held personally responsible for those risks.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS206015.


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24: Misapplication of money or property received for or in custody of firm, or

"Partners must handle other people's money and things carefully"


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26: Improper use of trust property for partnership purposes, or

"Partners aren't usually responsible if one partner wrongly uses trust property in the business"

Part 3Relationship of partners to third persons and to each other
Relationship of partners to third persons

25Liability for wrongful acts or omissions is joint and several

  1. Each partner (A) is liable jointly with A’s partners and also severally for everything for which the firm, while A is a partner, becomes liable under section 23 or 24.

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