Is a general partner of a limited partnership liable for the loss of partnership property?

British Columbia, Canada


The following excerpt is from Naramalta Development Corporation v. Therapy General Partner Ltd., 2012 BCSC 191 (CanLII):

The reasoning in Molchan was applied by Mr. Justice Shaw of this court in King v. On-Stream Natural Gas Management Inc., [1993] B.C.J. No. 1302 (S.C.). I adopt his conclusion, from para. 28: On reviewing the provisions in the Partnership Act relating to limited partnerships, I can find nothing which either expressly or by necessary implication says that a general partner in a limited partnership is under any lesser duty than a partner in an ordinary partnership with respect to partnership property. Considering the fact that a general partner in a limited partnership has the sole right to manage the business of the partnership and the limited partners are precluded from taking part in management, this, in my opinion, is a compelling reason why a general partner should be under at least the same duty as a partner in an ordinary partnership holding partnership property.

Other Questions


Can a general partner of a limited partnership breach trust if the partnership assets are used for a non-partnership purpose? (British Columbia, Canada)
Is a general partner of a limited partnership a fiduciary or a trustee? (British Columbia, Canada)
Does a former partner of a partnership have the legal effect of bringing an action against each partner of the partnership? (British Columbia, Canada)
Is a partner or a former partner of a partner able to hold assets acquired with their partner's funds in trust? (British Columbia, Canada)
How much is the respondent entitled to a 50% share of the assets of a property owned by her partner when she and her partner are married? (British Columbia, Canada)
Is there a limit on the general cost of a general cost award? (British Columbia, Canada)
When one spouse excludes property that is real property, is that a spouse entitled to an undivided half interest in the increased value of the property? (British Columbia, Canada)
When a long-term partnership has broken down, what is the contribution of the former partner to the value of assets acquired after the dissolution of the partnership? (British Columbia, Canada)
What are the general principles that must be considered when determining excluded property claims? (British Columbia, Canada)
In what circumstances will a solicitor be liable for the disgorgation of secret profit from a property developer? (British Columbia, Canada)
X



Alexi white


"The most advanced legal research software ever built."

Trusted by top litigators from across North America.