Plain language law

New Zealand law explained for everyone

Partnership Law Act 2019

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

64: Partnerships may opt out of audit requirement

You could also call this:

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

You can choose not to have your partnership's financial reports audited, even if it's a large partnership. This is called "opting out" of the audit requirement. Here's how it works:

Your partnership can opt out unless your partnership agreement says you can't. You have six months from the start of your accounting period to decide if you want to opt out. To opt out, you need to have a vote or get signatures from partners who own at least 95% of the partnership's capital. If you opt out, you don't have to follow the audit requirement in section 61 for that accounting period.

Remember, this only applies to large partnerships. If you're not sure if your partnership is considered large, you might want to check with someone who knows about business laws.

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 It might be out of date or be missing some parts.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

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS206079.

Topics:
Business > Industry rules
Previous

63: Financial reporting offences, or

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

Next

65: Duties do not apply if alternative financial reporting duties under Financial Markets Conduct Act 2013, or

"If your partnership already reports finances under another law, you don't need to do it again"

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

64Partnerships may opt out of audit requirement

  1. This section applies to a large partnership unless the partnership agreement expressly provides that this section does not apply.

  2. The partnership may, within 6 months from the start of an accounting period, opt out of compliance with section 61 (audit requirement) in relation to an accounting period.

  3. The partnership opts out by a resolution that is passed or signed by partners who together are entitled to share in at least 95% of the capital of the firm.

  4. If the partnership opts out in relation to an accounting period, section 61 does not apply to the partnership in relation to that period.

Compare