14Liability of the firm for wrongs

14 Liability of the firm for wrongs

(1) Subject to subsection (2), where by any wrongful act or omission of any partner acting in the ordinary course of the business of the firm or with the authority of his or her co-partners loss or injury is caused to any person not being a partner in 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.

S. 14(2) inserted by No. 35/1996 s. 449(2), amended by No. 44/2001 s. 3(Sch. item 87.1).

(2) For the purposes of subsection (1), a partner who commits a wrongful act or omission as a director of a body corporate, within the meaning of the Corporations Act, is not to be taken to be acting in the ordinary course of the business of the firm or with the authority of his or her co-partners only because—

(a) the partner obtained the agreement or authority of his or her co-partners, or some of them, to be appointed or to act as a director; or

(b) remuneration that the partner receives for acting as a director of a body corporate forms part of the income of the firm; or

(c) any co-partner is also a director of that or any other body corporate.

No. 3745 s. 15.