Partnership Act 1997

• Jurisdiction: Northern Territory
• Year: 1997
• Type of Document: Acts

NORTHERN TERRITORY OF AUSTRALIA

PARTNERSHIP ACT 1997

As in force at 20 November 2020

Table of provisions

Part 1 Preliminary

1 Short title ......................................................................................... 1

2 Commencement .............................................................................. 1

3 Definitions ........................................................................................ 1

4 Equity and common law................................................................... 3

Part 2 Partnerships generally

Division 1 Nature of Partnerships

5 Partnership ...................................................................................... 3

6 Determining existence of partnership other than incorporated

limited partnership ........................................................................... 3

7 Postponement of rights of person lending or selling in case of

bankruptcy ....................................................................................... 5

8 Firm and firm name ......................................................................... 5

Division 2 Relationship of partners to persons dealing

with them

9 Partner's power to bind firm ............................................................. 5

10 Partner acting for firm ...................................................................... 6

11 Partner using firm's credit ................................................................ 7

12 Effect of notice of agreement that firm not bound ............................ 7

13 Liability of partner ............................................................................ 7

14 Liability for loss, injury or penalty ..................................................... 8

15 Liability for misapplication of property .............................................. 9

16 Joint and several liabilities for wrongs ........................................... 10

17 Misuse of trust property ................................................................. 10

18 Representation as partner ............................................................. 10

19 Representations about firm's affairs .............................................. 11

20 Notice to acting partner is notice to firm ........................................ 11

21 Liabilities of incoming and outgoing partners ................................. 12

22 Revocation of continuing guarantee .............................................. 12

Division 3 Relationship between partners

23 Variation by consent of terms of partnership ................................. 13

24 Partnership property ...................................................................... 13

25 Property bought with partnership money ....................................... 14

Partnership Act 1997 ii

26 Personal estate held as partnership property ................................ 14

27 Procedure against partnership property for partner's separate

judgment debt ................................................................................ 14

28 Rules about interests and duties of partners ................................. 15

29 Expulsion of partner ....................................................................... 16

30 Retirement from partnership .......................................................... 16

31 Continuance of partnership on old terms ....................................... 16

32 Duty of partner to give information ................................................. 16

33 Accountability of partners for private profits ................................... 16

34 Duty of partner not to compete with firm ........................................ 17

35 Rights of assignee of share in partnership .................................... 17

Division 4 Dissolution of partnership

35A Application ..................................................................................... 18

36 Dissolution by expiration or notice ................................................. 18

37 Dissolution by death, bankruptcy or charge ................................... 18

38 Dissolution by illegality of partnership ............................................ 18

39 Dissolution by Court ...................................................................... 18

40 Rights of persons dealing with firm against apparent members

of firm ............................................................................................ 19

41 Right of partners to notify dissolution ............................................. 19

42 Continuing authority of partners for purposes of winding up .......... 20

43 Rights of partners as to application of partnership property........... 20

44 Apportionment of premium where partnership prematurely

dissolved........................................................................................ 20

45 Rights where partnership dissolved for fraud or

misrepresentation .......................................................................... 21

46 Share of profits made after dissolution .......................................... 21

47 Retiring or deceased partner's share to be debt ............................ 22

48 Rule for distribution of assets on final settlement of accounts ....... 22

Part 3 Incorporated limited partnerships

Division 1 Preliminary matters

49 Object ............................................................................................ 22

50 Application ..................................................................................... 23

Division 2 Formation of incorporated limited

partnerships

51 Formation ...................................................................................... 23

52 Nature of incorporated limited partnership ..................................... 23

53 Requirements about partners ........................................................ 23

54 Partnership agreement .................................................................. 24

55 Who may apply for registration ...................................................... 24

56 Application for registration ............................................................. 25

57 Registration ................................................................................... 26

Partnership Act 1997 iii

58 Register ......................................................................................... 27

59 Changes of registered information ................................................. 27

60 Certificate of registration ................................................................ 27

62 Preparatory acts do not create partnership ................................... 28

Division 3 Powers and liabilities of partnership

63 Powers of partnership .................................................................... 28

64 Relationship between partners ...................................................... 29

65 Liability of limited partners ............................................................. 30

66 Limited partners not to take part in management .......................... 30

67 Circumstances in which limited partner not regarded as taking

part in management ....................................................................... 31

68 Associates ..................................................................................... 34

69 Difference between partners.......................................................... 35

70 Change in partners ........................................................................ 35

71 Change in status of partners.......................................................... 36

72 Liability arising outside Territory .................................................... 36

73 Corresponding laws ....................................................................... 37

74 Partnership formed under corresponding laws .............................. 37

75 Effect of sections 72 and 74 .......................................................... 37

Division 4 Winding up

76 Assets ............................................................................................ 38

77 Voluntary winding up ..................................................................... 38

78 Winding up on certificate ............................................................... 38

79 Review of certificate ...................................................................... 39

80 Procedure for winding up on certificate ......................................... 40

81 Distribution of assets ..................................................................... 40

82 Application of Corporations Act 2001 ............................................ 41

83 Obligation to inform Commissioner ................................................ 42

84 Cancellation of registration ............................................................ 42

Division 5 Other matters

85 Seal and execution of documents .................................................. 43

86 Entitlement to make assumptions .................................................. 43

87 Assumptions .................................................................................. 43

88 Identification of partnership ............................................................ 44

89 Registered office ............................................................................ 45

90 Display of certificate of registration ................................................ 45

91 Obligations to notify Commissioner ............................................... 46

92 Service of documents .................................................................... 46

93 Entry in register constitutes notice ................................................. 47

94 Commissioner may require provision of information ...................... 47

95 Offences by partnerships ............................................................... 47

96 Relationship with Corporations legislation ..................................... 48