Northern Territory Numbered Acts

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PARTNERSHIP AMENDMENT (VENTURE CAPITAL FUNDS) ACT 2006 (NO 9 OF 2006) - SECT 14

Liability for loss, injury or penalty

(1)     A firm other than an incorporated limited partnership is liable to the same extent as a partner in the firm for any loss, injury or penalty caused by an act (including omission) of the partner if –

    (a)     the act occurred while the partner was acting in the ordinary course of the firm's business or with the authority of the other partners; and

    (b)     for a loss or injury – the loss or injury is not suffered by a partner in the firm.

(2)     An incorporated limited partnership is liable to the same extent as a general partner in the partnership for any loss, injury or penalty caused by an act (including omission) of the general partner if –

    (a)     the act occurred while the partner was acting in the ordinary course of the partnership's business or with the partnership's authority; and

    (b)     for a loss or injury – the loss or injury is not suffered by a partner in the partnership.

(3)     For subsections (1) and (2), an act of a partner as a director must not be taken to have occurred in the ordinary course of the firm's business or with the firm's authority only because of one or more of the following:

    (a)     the partner obtained the firm's agreement or authority to be appointed or to act as the director;

    (b)     the remuneration the partner receives as the director forms part of the firm's income;

    (c)     another partner in the firm is a director.

(4)     In this section –

"director" means –

    (a)     a director of a corporation within the meaning of the Corporations Act 2001; or

    (b)     a member of a body established by a law of the Territory.



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