List of summaries, consolidations and regulations
The Partnership Act
The Partnership Act sets out the rules for partnerships carrying on business in Saskatchewan and for the dissolution of partnerships.
Partnerships doing business in Saskatchewan, including extra-provincial partnerships, must register their business names under The Business Names Registration Act.. However, the laws of the jurisdiction in which the extra-provincial partnership is formed govern its formation, internal affairs and limited liability of limited partners.
A partnership is an unincorporated business organization. Unlike business corporations, for example, a partnership has no legal existence distinct from the individuals composing it. The partners are jointly and severally liable.
There are two forms of partnership:
In a general partnership, two or more general partners manage the business, share in the profits, and are equally responsible or liable for its debts. Their individual acts are binding on the other partners and all partners are personally liable for the partnerships' total liabilities.
In a limited partnership, there must be at least one general partner and at least one limited partner. The limited partner or partners may invest in the business but are not directly involved in management, have no say in the daily operations of the company, and are liable only to the extent of their investments.
Partnerships are common for service professions such as accounting, dentistry and law. These can be viewed as "unlimited liability partnerships" because these professions cannot practise with a shield against liability for professional malpractice claims against their firms.
The Act establishes rules for determining whether a relationship is one of partnership, such as:
Amendments to the Act in 2001 authorize limited liability partnerships. The formation of such partnerships is limited to professions. In these partnerships, partners are not, as such, personally liable for obligations of the firm. Liability continues to apply if a person suffers injury because of the partner's negligent or wrongful acts or omissions, including negligence in appointing, supervising or failing to supervise another member or employee of the firm, or where the partner knew of the wrongful acts or omissions and failed to take reasonable steps to prevent them. Limited liability partnerships and extra-provincial limited liability partnerships must register at the Corporations Branch and file annual returns.
Amendments to the Act in 2006 allow Indian bands and limited partnerships to become general or limited partners in another partnership.
Subject to the agreement between the partners, partnerships automatically dissolve if any partner doesn't live up to the partnership agreement for reasons of incompetence, bankruptcy or authorized assignment under the Bankruptcy Act (Canada), or illness or death.