Partnership Law Act 2019

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

31: Liability of incoming partner

You could also call this:

"New partners don't have to pay for old problems"

If you join a business partnership that already exists, you don't have to pay for things the business did before you joined. This means you're not responsible for any debts or actions the business took before you became a partner. For example, if the business owed money to someone before you joined, you don't have to help pay that money back. This rule helps protect new partners from old problems they didn't cause.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS206025.


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32: Liability of partner who leaves firm, or

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

31Liability of incoming partner

  1. If a person (A) becomes a partner of an existing firm, that does not make A liable to the firm’s creditors for anything done before A became a partner.

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