Western Australian Current Acts

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PARTNERSHIP ACT 1895 - SECT 17

17 .         Liability of firm for wrongs

        (1)         Where by any wrongful act or omission of any partner acting in the ordinary course of the business of the firm, or with the authority of his copartners, loss or injury is caused to any person not being a partner in the firm, or any penalty is incurred, the firm is liable therefor to the same extent as the partner so acting or omitting to act.

        (2)         For the purposes of subsection (1), a partner who commits a wrongful act or omission as a director of a corporation, as defined in section 9 of the Corporations Act 2001 of the Commonwealth, is not to be taken to be acting in the ordinary course of the business of the firm or with the authority of the partner’s copartners only because of any one or more of the following —

            (a)         the partner obtained the agreement or authority of the partner’s copartners, or some of them, to be appointed or to act as a director of the corporation;

            (b)         remuneration that the partner receives for acting as a director of the corporation forms part of the income of the firm;

            (c)         any copartner is also a director of that or any other corporation;

            (d)         the firm acts for the corporation.

        [Section 17 amended: No. 3 of 2005 s. 3.]



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