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Partnership Law Act 2019

Financial reporting, dissolution of partnership, and other miscellaneous provisions - Financial reporting for large partnerships

63: Financial reporting offences

You could also call this:

“Partners can be fined for not following the rules about money reports”

If you’re a partner in a partnership, you need to be careful about financial reporting. You could get in trouble and have to pay up to $50,000 if you don’t follow the rules.

You might get in trouble if you and the other partners don’t do what section 59 says. You also need to be careful about section 60. This section says you need to complete and sign financial statements on time. These statements also need to follow the right financial reporting standards. Lastly, you need to make sure you follow what section 61 says.

But don’t worry, you have ways to defend yourself if you’re accused of breaking these rules. You can show that the partnership did everything it could to follow the rules. Or you can show that you personally did everything you could. You can also defend yourself by showing that, given the situation, it wouldn’t be fair to expect you to have done more to follow the rules.

Remember, it’s important to take these financial reporting rules seriously to avoid getting into trouble.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS206078.

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62: Audit must comply with auditing and assurance standards, or

"Audits and their reports must follow all the rules"

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64: Partnerships may opt out of audit requirement, or

"Partners can decide together if they want someone to check their big partnership's money records"

Part 4 Financial reporting, dissolution of partnership, and other miscellaneous provisions
Financial reporting for large partnerships

63Financial reporting offences

  1. Every partner of a partnership commits an offence and is liable on conviction to a fine not exceeding $50,000 if—

  2. the partners fail to comply with section 59; or
    1. the partners are required to comply with section 60 and the financial statements of the partnership—
      1. are not completed and signed within the time specified in that section; or
        1. fail to comply with an applicable financial reporting standard; or
        2. the partners fail to comply with section 61.

          1. It is a defence for a partner charged with an offence under this section in respect of a requirement if the partner proves that—

          2. the partnership took all reasonable and proper steps to ensure that the requirement would be complied with; or
            1. the partner took all reasonable steps to ensure that the requirement would be complied with; or
              1. in the circumstances, the partner could not reasonably have been expected to take steps to ensure that the requirement would be complied with.

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