§425-13 Personal liability and penalty.

330 words·~2 min read·/hi/chapter-425/425-13

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)If a partner neglects or fails to comply with any provision of this part, all partners shall be liable jointly and severally for all the debts and liabilities of the partnership, and may be severally sued therefor, without the necessity of joining the other partners in any action or suit, and shall also severally forfeit to the State $25 for each and every month while the default shall continue, to be recovered by action brought in the name of the State by the director of commerce and consumer affairs; provided that as to the forfeiture penalty, the director may, for good cause shown, reduce or waive the same.

(b)Any person who signs or certifies as correct any statement or certificate filed pursuant to this part, knowing the same to be false in any material particular, shall be fined not more than $5,000.

(c)Any person who negligently but without intent to defraud signs or certifies as correct any statement or certificate filed pursuant to this part, which statement or certificate is false in any material particular, shall be punished by a fine not exceeding $500. [L 1969, c 247, pt of §1; am L 1980, c 270, §5; am L 1982, c 204, §8; am L 1983, c 124, §17]

Case Notes

Each member of nonregistered partnership firm may be held liable for partnership debts and sued severally therefor. 9 H. 507 (1894); 22 H. 455, 457 (1915).

Only penalties for nonregistration of copartnership are fine and liability of one partner for all partnership debts, and where firm is defendant, plaintiff is relieved of consequences of nonjoinder of partner as defendant. Unregistered partnership not liable for individual or personal debt of one partner. 11 H. 198 (1897).

Noncompliance with statute does not make partnership illegal and does not affect right of one partner to restrain late copartner from collecting assets contrary to their agreement. 11 H. 563 (1898); 22 H. 196, 198 (1914).