Sessional_Paper_1911 — Page 99

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on liability.

5.-(1.) The liability of each partner in a registered Effect of partnership, which may sue and be sued in its registered registration name, shall be unlimited in respect of assets in his posses- sion connected with the registere partnership.

(2.) The liability of each unregistered partner in a registered partnership shall be unlimited.

(3.) The liability of each registered partner in a regis- tered partnership beyond his liability uuder sub-section (1) of this section, shall be limited to such proportion of the debts and obligations of the registered partnership as his interest in the registered partnership bears to the total interest of all the partners therein, whether registered or unregistered.

(4.) Where a firm or family tong is registered as a registered partner in a registered partnership, but is not itself registered as a registered partnership the liability of each of its partners or members shall be unlimited in res- pect of assets in his possession connected with the registered partnersliip, but his further liability shall be limited to such proportion of the debts and obligations of the registered partnership as the interest of his firm or tong in the re- gistered partnership bears to the total interest of all the partners therein whether registered or unregistered.

(5.) Where a firm or family tong is registered as a ree gistered partner in a registered partnership and is itself also registered as a registered partnership the liability of each of its registered partners or members shall be unlimited in res- pect of assets in his possession connected with the registered partnership in which his firm or tong is a registered part- ner; but his further liability shall be limited to such pro- portion of what would have been his total liability if his firm or tong had not itself been a registered partnership as his interest in his own firm or tong hears to the total in- terest of all the partners therein, whether registered or un- registered.

(6.) Where a firm or family tong is registered as a re- gistered partner in a registered partnership and is itself also registered as a registered partnership the liability of cach of its unregistered partners or members shall be un- limited in respect of assets in his possession connected with the registered partnership in which the firm or tong is a registered partner; but his further liability shall be limited to such proportion of the debts and obligations of the re- gistered partnership as the interest of his firm or tong in the registered partnership bears to the total interest of all the partners therein whether registered or unregistered.

(7.) No person registered only as a hung kú share- holder shall be under any further liability for the debts and obligations of the firm in which he is so registered than the liability imposed by sub-section (1) of this section.

(8.) The burden of proving that assets in his possession are unconnected with the registered partnership shall be on the person who seeks to have his liability limited under this section.

(9.) No member of a firm or family tong which is registered as a partner other than the registered repre- sentative thereof shall take part in the management of the business of the registered partnership or shall have power to bind the registered partnership.

Provided that any member of such a firm or tong may by himself or his agent at any time inspect the books of the firm and examine into the state and prospects of the partner-hip business,

If a member of such a firm or tong other than the registerel representative thereof takes part in the manage- ment of the business of the registered partnership he shall be personally liable to an unlimited extent for all debts and obligations of the registered partnership incurred while he so takes part in the management thereof.

(10.) A firm or family tong registered as a partner in a registered partnership may be sued in its firm or tong name in respect of the debts and obligations of the registered partnership, and service on its registered representative shall be deemed sufficient service on the partners in the firm or the members of the tong.