THE PARTNERSHIP (GENERAL) ACT, 2017

1 THE PARTNERSHIP (GENERAL) ACT, 2017 (Act 3 of 2017) ARRANGEMENT OF SECTIONS PART I-Preliminary 1. Short title and commencement. 2 Interpretation. 3. Savings for PARTNERSHIP rules of common law and equity. 4. Formation of partnerships and conversion of form. 5. The PARTNERSHIP agreement. 6. Meaningof"firm". 7. Knowledge and notice. PART II-Partnerships without Separate Legal Personality 8. PARTNERSHIP under this Part. 9. When PARTNERSHIP governed by this Part. 10. Rules for determining the existence of PARTNERSHIP governed by this Part. 11. Determination as to whether a person is a partner in a PARTNERSHIP , governed by this Part. Relations of Partners to Persons Dealing with them 12. Acts of partners to bind the firm. 13. Partners bound by acts on behalf of the firm. 14. Partner using credit of firm for purposes not connected with the firm. 15. Firm not bound by acts of partner where agreement is made between parties and notice is given. 16. Liability of partners. 17. Liability of the finn for wrongs.

2 18. Misapplication of money or property received for or in custody of the firm. II 19. Liability for wrongs joint and several. 20. Improper employment of trust property for PARTNERSHIP purposes. 21. Persons liable by "holding-out". 22. Admissions and representations of partners. 23. Liabilities of incoming and outgoing partners. 24. Revocation of continuing guarantee by change of firm. Relations of Partners to one another 25. Variation by consent of the terms of PARTNERSHIP . 26. Making and variation of capital contribution. 27. PARTNERSHIP property. 28. Property bought with PARTNERSHIP money. 29. Conversion into personal estate of land held as PARTNERSHIP property. 30. Procedure against PARTNERSHIP property for a judgment debt against a partner. 31. Rules as to interests and duties of partners subject to special agreement. 32. Expulsion of partners. 33. Determination of PARTNERSHIP at will. 34. Where PARTNERSHIP for term is continued over, continuance on old terms presumed.

3 35. Duty of partners to render accounts, etc. 36. Accountability of partners for private profits. 37. Duty of partner not to compete with the firm. 38. Rights of assignee of share in PARTNERSHIP . Dissolution of PARTNERSHIP 39. Dissolution by expiration or notice. 40. Dissolution by bankruptcy, death or charge. 41. Dissolution by illegality of PARTNERSHIP . 42. Dissolution by the Court. 111 43. Rights of persons dealing with firm against apparent partners. 44. Right of partners to notify dissolution. 45. Continuing authority of partners for purposes of winding up. 46. Rights of partners as to application of PARTNERSHIP property. 47. Apportionment of premium where PARTNERSHIP prematurely dissolved. 48. Rights where PARTNERSHIP dissolved for fraud or misrepresentation. 49. Rights of outgoing partner in certain cases to share profits made after dissolution. 50. Retiring or deceased partner's share to be a debt. 51. Rules for distribution of assets on final settlement of accounts.

4 PART III- PARTNERSHIP with Separate Legal Personality 52. Interpretation for Part and application. 53. PARTNERSHIP as entity. 54. Formation of PARTNERSHIP . 55. Duties of Registrar to register under this Part. 56. Effect of statement of PARTNERSHIP authority. 57. Duty of PARTNERSHIP to use required words or abbreviation at the end of name. 58. Effect of PARTNERSHIP agreement: non-waivable provisions. 59. Execution, filing, and recording of statements. ro. Statement of PARTNERSHIP authority. 61. Statement of denial. 62. Partner agent of PARTNERSHIP . 63. Liability of PARTNERSHIP for loss or injury. 64. Partner's liability. 65. Actions by and against PARTNERSHIP and partners. ()6. Liability of purported partner. 67. Partner's rights and duties. 68. Distributions in kind. iv (f)_ Partner's rights and duties with respect to information. 70. General standards of partner's conduct. 71. Actions by PARTNERSHIP and partners. 72. Partner's transferable interest in PARTNERSHIP . 73. transfer of partner's transferable interest.

5 74. Partner's transferable interest subject to charging order. 75. Continuation of PARTNERSHIP beyond definite term or particular undertaking. PARTNERSHIP Property 76. PARTNERSHIP Property. 77. When property is PARTNERSHIP property. 78. transfer of PARTNERSHIP property. 79. Partner not co-owner of PARTNERSHIP property. Partners Dissociation 80. Events causing partner's dissociation 81. Partner's power to dissociate: wrongful dissociation. 82. Effect of partner's dissociation. Partners Dissociation when Business not Wound up 83. Purchase of dissociated partner's interest. 84. Dissociate~ partner's power to bind and liability to PARTNERSHIP . 85. Dissociated partner's liability to other persons. 86. Statement of dissociation. 87. Continued use of PARTNERSHIP name. Winding up PARTNERSHIP Business 88. Events causing dissolution and winding up of PARTNERSHIP business. 89. PARTNERSHIP continues after dissolution. 90. Right to wind up PARTNERSHIP business. 91. Partner's power to bind the PARTNERSHIP after dissolution.

6 92. Statement of dissolution. V 93. Partner's liability to other partners after dissolution. 94. Settlement of accounts and contributions among partners. PART IV-Conversions and Mergers 95. Conversion of PARTNERSHIP formed under Part II to PARTNERSHIP with separate legal personality. 96. Conversion of general PARTNERSHIP under Part III to limited PARTNERSHIP under Part III of the PARTNERSHIP (Limited) Act. 97. Conversion oflimited PARTNERSHIP to general PARTNERSHIP under Part III. 98. Effect of conversion: entity unchanged. 99. Restrictions on conversion. 100. Merger of partnerships. 101. Effect of merger. 102. Statement of merger. 103. Provisions of sections 100 to 102 non-exclusive reconversion or merger. PART V-Limited Liability Partnerships 104. Statement of qualification as LLP. 105. Name of LLP. 106. Annual return. PART VI-Foreign Limited Liability Partnerships 107. Statement of foreign qualification as LLP. 108. Law governing foreign limited liability partnerships.

7 109. Effect of failure to have statement of foreign qualification. 110. Activities not constituting transacting business. PART VII-Miscellaneous Provisions 111. Regulations. 112. Consequential amendment to Companies Act. JAMAICA No. 3 -2017 I assent, [ ] ?fl Governor-General. AN ACT to Provide for the formation and operation of general partnerships and for connected purposes. Tl c ouh d b/ tlu. [ bringing the Act into operatin '1 ] BE IT ENACTED by The Queen's Most Excellent Majesty, by and with the advice and consent of the Senate and House of Representatives of Jamaica, and by the authority of the same, as follows:-p ART I-Preliminary 1. This Act maybe cited as the PARTNERSHIP (General) Act, 2017, Short title and shall come into operation on a day to be appointed by the Minister ~:~mence-by notice published in the Gazette. ment. { 1) In this Act, unless the context otherwise requires-"bankrupt" has the meaning assigned to it under the Insolvency Act; Interpretation.}

8 [No. The PARTNERSHIP (General) Act, 2017 "body corporate" means a body of persons established, or for the establishment of which provision is made, by an enactment and includes a company; "business" includes every trade, occupation or profession; "company" means a company incorporated orregistered pursuant to the Companies Act or any body or association incorporated or registered under any enactment, which is prescribed by the Minister, by order, to be a company; "competing business" means a business carried on by a partner of a firm, without the agreement ofall the other partners of the firm, which competes with and is of the same nature as the PARTNERSHIP business; "Court" means the Supreme Court of Judicature of Jamaica and in relation to Part III, shall have the meaning assigned to it under section 52(1 ); "date of bankruptcy" has the meaning assigned to it in the Insolvency Act; "domestic PARTNERSHIP " or " PARTNERSHIP ", in the absence of express provision to the contrary, means a general PARTNERSHIP governed, or formed and governed, under this Act; "foreign limited liability PARTNERSHIP " or "foreign LLP" means a PARTNERSHIP that-( a) is formed under the laws of a jurisdiction other than Jamaica; and (b) has the status of a limited liability PARTNERSHIP under those laws; "foreign PARTNERSHIP " means a PARTNERSHIP formed under the laws of a jurisdiction other than Jamaica, and "foreign" in relation to any PARTNERSHIP shall be construed accordingly; "general partner" means a partner in a PARTNERSHIP who is liable, ( whether on his own or jointly or severally with other partners) The PARTNERSHIP (General) Act, 2017 [No.]]

9 ] for all obligations of the PARTNERSHIP , whether the PARTNERSHIP is a general PARTNERSHIP or a limited PARTNERSHIP ; "general PARTNERSHIP " means-( a) a PARTNERSHIP governed by Part II or formed under Part III; (b) a PARTNERSHIP governed by Part II that has converted to a PARTNERSHIP under Part III; ( c) a limited liability PARTNERSHIP governed by Part V; "limited liability PARTNERSHIP " or "LLP" means-( a) a PARTNERSHIP formed under Part III; or (b) a PARTNERSHIP governed by Part II which has converted to a PARTNERSHIP under Part III, which has filed with the Registrar a statement of qualification under section 104; "limited partner" means a partner in a limited PARTNERSHIP who is not a general partner; "limited PARTNERSHIP " means a limited PARTNERSHIP governed, or formed and governed, under the provisions of the PARTNERSHIP (Limited) Act, or created under the comparable law of another jurisdiction; "limited PARTNERSHIP agreement" means an agreement as to the affairs of a limited PARTNERSHIP and the conduct ofits business; "partner" means a person who is a party to a PARTNERSHIP agreement; " PARTNERSHIP " means a relationship which subsists between persons carrying on a business in common with a view of profit and in relation to Part II shall be construed in accordance with section 8(3) and in relation to Part III shall be construed in accordance with section 52(2); 3 [No.

10 The PARTNERSHIP (General) Act, 2017 " PARTNERSHIP agreement" means the agreement among the partners concerning their PARTNERSHIP , including amendments to the agreement, and shall be construed in accordance with, section 5; " PARTNERSHIP at will" means a PARTNERSHIP in which the partners have not agreed to remain partners until the expiration of a definite term or the completion of a particular undertaking; " PARTNERSHIP interest" or "partner's interest in the PARTNERSHIP " means all of a partner's interest in the PARTNERSHIP , including the partner's transferable interest and all management and other rights; " PARTNERSHIP matters" means matters affecting the PARTNERSHIP of which the partners would reasonably expect to be kept informed; "person" includes-(a) a PARTNERSHIP governed by Part III of the PARTNERSHIP (Limited) Act; (b) a PARTNERSHIP governed or formed and governed under Part III; "record" means infom1ation that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form; "Register" means the Register of Partnerships with separate legal personality formed under Part III and required by section 55( 1) to be kept by the Registrar; "Registrar" means the Registrar of Companies; " transfer " includes an assignment, a conveyance , sale, lease, mortgage or security interest, an encumbrance, including a gift and a transfer by operation oflaw; "transferable interest" means the right as initially owed by a person in the person's capacity as partner, to receive distribution The PARTNERSHIP (General) Act, 20/7 [No.]