482

No. 1 of 1897.

PARTNERSHIP.

[Originally No. 2 of 1897.]

53 & 54 Vict. c. 39.

Definition of partnership.

Rules for 1897.

No. 1 of 1897.

An Ordinance to codify the law relating to partnership.

[15th May, 1897.]

Nature of partnership:

1. (1) Partnership is the relation which subsists between persons carrying on a business in common with a view of profit.

(2) But the relation between members of any company or association which is

(a) registered as a company under any Ordinance relating to the registration of joint-stock companies; or

(b) formed or incorporated by or in pursuance of any other Ordinance, or any Act of Parliament, or letters patent, or Royal Charter,

is not a partnership within the meaning of this Ordinance.

2. In determining whether a partnership does or does not exist, regard shall be had to the following rules:

Determining partnership.

(1) Joint tenancy, tenancy in common, joint property, common property, or part ownership does not of itself create a partnership as to anything so held or owned, whether the tenants or owners do or do not share any profits made by the use thereof;

(2) The sharing of gross returns does not of itself create a partnership, whether the persons sharing such returns have or have not a joint or common right or interest in any property from which or from the use of which the returns are derived;

(3) The receipt by a person of a share of the profits of a business is primâ facie evidence that he is a partner in the business, but the receipt of such a share, or of a payment

* The numbering of the sections in this Ordinance, except s. 47, corresponds with that of the sections in the Partnership Act, 1890. The short-title is in s. 47.

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