Queensland Consolidated Acts

PARTNERSHIP ACT 1891 - SECT 12

12 Liability of partners

(1) Every partner in a firm, other than an incorporated limited partnership, is liable jointly with the other partners for all debts and obligations of the firm incurred while a partner, and, if the partner is an individual, after the partner’s death the partner’s estate is also severally liable in a due course of administration for those debts and obligations, so far as they remain unsatisfied, but subject to the prior payment of the partner’s separate debts.

(2) Every general partner in an incorporated limited partnership is liable jointly with the incorporated limited partnership for all debts and obligations of the partnership incurred while the general partner is a general partner, and, if the general partner is an individual, after the general partner’s death the general partner’s estate is also severally liable in a due course of administration for those debts or obligations so far as they remain unsatisfied but subject to the prior payment of the partner’s separate debts.

(3) Despite subsection (2) , a general partner in an incorporated limited partnership is only liable for any debts or obligations of the incorporated limited partnership—

(a) to the extent the incorporated limited partnership is unable to satisfy the debts and obligations; or

(b) to a greater extent provided by the partnership agreement.