10Liability of firm for wrongs

#### 10 Liability of firm for wrongs 10 Liability of firm for wrongs > > (1) Subject to subsection (2), where by any wrongful act or omission of any partner in a firm other than an incorporated limited partnership acting in the ordinary course of the business of the firm, or with the authority of the partner’s co-partners, loss or injury is caused to any person not being a partner of the firm, or any penalty is incurred, the firm is liable therefor to the same extent as the partner so acting or omitting to act. > > > (2) For the purposes of subsection (1), a partner in a firm other than an incorporated limited partnership who commits a wrongful act or omission as a director of a body corporate, within the meaning of the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth, is not to be taken to be acting in the ordinary course of the business of the firm or with the authority of the partner’s co-partners only because of any one or more of the following— > > > > > (a) the partner obtained the agreement or authority of the partner’s co-partners, or some of them, to be appointed or to act as a director of the body corporate, > > > > > (b) remuneration that the partner receives for acting as a director of the body corporate forms part of the income of the firm, > > > > > (c) any co-partner is also a director of that or any other body corporate. > > > (3) Subject to subsection (4), where by any wrongful act or omission of any general partner in an incorporated limited partnership acting in the ordinary course of the business of the incorporated limited partnership, or with its authority, loss or injury is caused to any person not being a partner in the incorporated limited partnership, or any penalty is incurred, the incorporated limited partnership is liable in respect of that loss or injury or penalty to the same extent as the general partner so acting or omitting to act. > > > (4) For the purposes of subsection (3), a general partner in an incorporated limited partnership who commits a wrongful act or omission as a director of a body corporate, within the meaning of the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth, is not to be taken to be acting in the ordinary course of business of the incorporated limited partnership or with its authority only because of any one or more of the following— > > > > > (a) the general partner obtained the agreement or authority of the incorporated limited partnership to be appointed or to act as a director of the body corporate, > > > > > (b) remuneration that the general partner receives for acting as a director of the body corporate forms part of the income of the incorporated limited partnership, > > > > > (c) any other general partner in the incorporated limited partnership is also a director of that or any other body corporate. > > **s 10:** Am 1994 No 32, Sch 3; 1998 No 36, Sch 1 \[1\] \[2\]; 2001 No 34, Sch 4.43 \[2\]; 2004 No 8, Sch 1 \[20\]–\[22\].