Partnership Act 1997
71Change in status of partners
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71 Change in status of partners (1) A general partner in an incorporated limited partnership that becomes a limited partner in the partnership is liable for any liability incurred by the partnership before the partner becomes the limited partner: (a) to the extent to which the partnership cannot satisfy the liability; or (b) to a greater extent provided by the partnership agreement. (2) A limited partner in the partnership that becomes a general partner in the partnership is not liable for any liability of the partnership: (a) that was incurred before the partner becomes the general partner; and (b) for which the partner was not liable while being a limited partner.