Bc to allow for LLPs The wait is fi...

Bc to allow for LLPs

The wait is finally above On April 27, the provincial command introduced Bill 35 - Partnership Amendment Act, 2004 which allows for Limited Liability Partnerships (LLPs) in BC

Prior to these amendments, partnership law in BC was seriously public of date, and the provincial rule is to be congratulated for addressing the vexed question As Finance Minister Gary Collins said in the Legislature: "[BC] has lagged behind other jurisdictions in Canada and around the world in not having legislation providing for limited liability partnerships. These amendments will counteractive the situation, making BC a more attractive place to do business."

The restraint said the amendments make partners more entirely accountable to their clients, and render certain that all partners can engage in their business without putting personal assets at risk.

Partnership Amendment Act

Under the amendments to partnership law-which had passed third reading according to the time Beyond Numbers went to press-partners in a limited liability partnership have protection from personal liability for the shortcomings of the partnership and the other partners, object in cases of negligence or wrongdoing.

Collins said the amendments will place BC at the forefront in Canada from providing partners with full-shield limited liability.

According to the legislation, to obtain and maintain LLP status, the partnership must register at the Corporate Registry, notify clients of their change in status, include the literal senses "LLP" in their business name, and make an up-to-date list of partners available to the public at all times. As part of the legislation, the Accountants (Chartered) Act will be amended to allow for LLPs

BC's recent legislation places no restrictions onward the types of businesses able to register. In fact, Collins said the legislation will draw near into force by regulation (expect in the fall) one time the Corporate Registry has the appropriate forms and processe in place.

Good public policy

Modernizing partnership law to allow for LLP now imposes BC on an equal footing with the ease of North America, where LLP have become the norm in partnership law from one side of to the other the past decade, primarily because they make fit public policy.

LLPs started in the US in the early 1990 and support began to build in Canada at the extreme point of that decade. In 1998 the federal Standing Committee forward Banking, Trade, and Commerce endorsed LLP for the provinces, and Ontario became the first province to introduce legislation. through 1999, the Uniform Law parley of Canada had recommended LLP for the provinces, and Alberta had become the secondary to modernize its partnership law. Similar legislation to allow for LLP was brought in from Quebec in 2000, Saskatchewan in 2001 Manitoba in 2002 and novel Brunswick in 2003.

LLP efforts

BC's of recent origin partnership legislation is the culmination of years of effort through the accounting and legal professions. In next to the first reading debates, Collins said: "Government had received direct representation from the law profession and chartered accountants, who petition fored that changes to their legislation be made."

Achieving LLP for CA firms has been undivided of the Institute's top priorities for many years. The Institute has had numerous meetings with the one and the other elected and non-elected government officials, preparing and submitted policy papers and making several presentations. All of these efforts paid along as the provincial government became aware of the issue, understood its importance, and took action.

During third reading of the legislation, MLA Brian Kerr FCA, called it a "red-letter day," explaining that he'd had to face the liability riddle in his previous work as a CA. Kerr said: "The liability chill had quite an general intent on the type of work that you would take in succession as an engagement and made it difficult sometimes for persons to take on riskier engagements.... This [legislation] is great news"

More info

David Wende, LLB of Alexander Holburn Beaudin & Lang, will speak about the changes to partnership law at the AGM in succession June 23rd. And look for more details forward LLPs in future issues of Beyond Numbers.

Caution re: Federal Election

If you are asked to act as auditor of a candidate in the upcoming federal election, note that performing like duties falls under the umbrella of public practice; you must, therefore be licensed with the Institute and carry professional liability insurance. As well, the Practice Review & Licensing Committee will review the audit file supporting your opinion.

The Institute will waive all preciousnesss related to licensing and file review; however, the insurance prices cannot be waived, as they are not an Institute service. Moreover, all members are advised that they must maintain the professional liability insurance for six years after performing the task.

If you have any questions, please contact Mike Essex CA, director of Practice Review & Licensing, at essex@ica.bc.ca or 604-488-2622 toll released 1-800-663-2677.

BY RICHARD REES, FCA

CEO

Copyright Institute of Chartered Accountants of British Columbia Jun/Jul 2004

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