BILL NO. 194

(as introduced)

2nd Session, 60th General Assembly
Nova Scotia
57 Elizabeth II, 2008

Government Bill

Partnership Act
(amended)

The Honourable Jamie Muir
Minister of Service Nova Scotia and Municipal Relations

First Reading: October 30, 2008

(Explanatory Notes)

Second Reading: November 6, 2008

Third Reading: November 20, 2008 (WITH COMMITTEE AMENDMENTS) (LINK TO BILL AS PASSED)

Clause 1 affords professional partners of Nova Scotia limited liability partnerships greater personal liability protection.

1 Clause 48(g) of Chapter 334 of the Revised Statutes, 1989, the Partnership Act, is repealed and the following clause substituted:

(g) "professional liability claim" means a claim against a partnership with respect to the negligence, wrongful act or omission, malpractice or misconduct of a partner occurring in the ordinary course of practising a profession in a Nova Scotia LLP or an extra-provincial LLP;

2 Subsection 57(1) of Chapter 334 is repealed and the following subsection substituted:

(1) Subject to subsections (2), (4) and (5), a partner in a Nova Scotia LLP is not individually liable, directly or indirectly, by means of indemnification, contribution, assessment or otherwise for
(a) debts, obligations or liabilities of the partnership or another partner that arise from the negligence, wrongful act or omission, malpractice or misconduct of
(i) another partner, or

(ii) an employee, agent or representative of the partnership,

occurring in the ordinary course of carrying on practice in a profession referred to in subsection 51(1) while the partnership is a Nova Scotia LLP; or

(b) any partnership obligation not referred to in clause (a).