Deposit Takers Act 2023

Depositor compensation scheme - Entitlement to compensation - Entitlement rules

207: Partnerships

You could also call this:

"Partnerships are treated as one person, not many, when it comes to getting compensation"

Illustration for Deposit Takers Act 2023

When you are looking at entitlement to compensation from the fund, a partnership is treated as a separate person from its partners. This is according to the Partnership Law Act 2019, which you can find on the New Zealand legislation website. You treat the partnership as one person, not as many people.

If a partnership has a protected deposit, the partners are not treated as separate people under section 204. This means the partners are counted as one person, even if there are two or more partners in the partnership.

The partnership is considered one person for the purpose of compensation, and this helps decide how the compensation is given.

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This page was last updated on 6 August 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS543753.

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206: District Court may make order about shares, or

"Court can decide who owns a protected deposit and what share they get"

208: Providers of relevant arrangement not entitled to compensation, or

"If something goes wrong, you can't get compensation for holding someone's deposit, but they might."

Part 6Depositor compensation scheme
Entitlement to compensation: Entitlement rules

207Partnerships

For the purpose of entitlement to compensation from the fund, a partnership under the Partnership Law Act 2019 must be treated as being a person that is distinct from its partners.
Accordingly, if a protected deposit is held by, for, or on behalf of 2 or more partners for a partnership, the partners must not be treated as being 2 or more persons under section 204.