Partnership Law Act 2019

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

47: Entitlement to interest

You could also call this:

"Getting interest if you pay more than your share in a business"

Illustration for Partnership Law Act 2019

If you are a partner in a business and you pay more money than you agreed to, you are entitled to interest from the date you made the payment. The interest is calculated according to the rules in Schedule 2 of the Interest on Money Claims Act 2016. You do not get interest on the money you invested in the business until the profits are worked out.

You only get interest if you paid more than you agreed to, and you paid it for the business. If you just invested money in the business, you do not get interest until the business works out how much profit it made. The rules for calculating interest are in Schedule 2 of the Interest on Money Claims Act 2016, which tells you how to work out the interest you are owed.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on 2 October 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS206047.

Topics:

Money and consumer rights > Consumer protectionBusiness > Industry rules

46: Firm must indemnify partner for payments made, and personal liabilities incurred, for firm, or

"Partnership must pay partners back for money spent or debts taken on for the business"

48: Partner may manage business, or

"Partners can help run the business together"

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

47Entitlement to interest

If a partner makes, for the purpose of the partnership, an actual payment or an advance that is more than the capital that the partner has agreed to provide, the partner is entitled to interest from the date of the payment or advance.
The interest must be calculated in accordance with Schedule 2 of the Interest on Money Claims Act 2016.
A partner is not entitled, before the profits are ascertained, to interest on the capital provided by the partner.

Compare

1908 No 139 s 27(c), (d)

Notes

Section 47(1): amended, on 30 March 2025, by section 153(1) of the Regulatory Systems (Economic Development) Amendment Act 2025 (2025 No 11).
Section 47(1A): inserted, on 30 March 2025, by section 153(2) of the Regulatory Systems (Economic Development) Amendment Act 2025 (2025 No 11).