Business Organisations

Partnership

An association of two or more persons formed to make a profit.

Deed of Partnership

A legal document negotiated and signed by all partners that governs internal matters such as capital contributions and profit/loss sharing ratios.

Partnership Law Act 2019

The legislation that provides default rules for partnerships unless otherwise agreed upon by the partners.

Joint and Several Liability

A legal concept where all partners are jointly liable for business debts and obligations.

Sole Trader

The simplest and most common form of business structure owned and operated by a single individual.

Unlimited Liability

The legal status where the owner of a business is personally responsible for all debts and obligations of the business.

Trust

A legal arrangement where a trustee holds property on behalf of beneficiaries.

Trustee

The person or entity managing the trust and responsible for holding and administering the trust assets.

Beneficiary

The person or entity entitled to receive benefits from a trust.

Limited Partnership

A separate legal entity combining general and limited partners, where liability is limited for limited partners.

General Partner

A partner in a limited partnership who manages the business and has unlimited liability.

Limited Partner

A partner in a limited partnership who contributes capital but does not participate in management and has limited liability.

Company

A separate legal person that can own property, enter contracts, and sue or be sued.

Companies Act 1993

The primary legislation governing company formation, rights, and duties in New Zealand.

Shareholder

An individual or entity that owns shares in a company and has the right to share in profits (if any).

Limited Liability

A legal structure where a shareholder's liability is limited to the amount invested in shares.