aussi disponible en français
September 23, 2005
For immediate release
Legislation Proposed to Allow for Limited Liability Partnerships in Prince Edward Island
Office of the Attorney General
“These amendments give PEI businesses and professionals an option which is now the standard in partnership law across the country,” said Honourable Mildred Dover, Attorney General. “The proposed legislative changes provide added protection to professionals entering into partnerships and have the potential to make PEI a more attractive place to carry on business.”
Unlike partners in an ordinary partnership, partners in a limited liability partnership have protection from personal liability for the debts of the partnership and the other partners. LLP partners are fully accountable to their clients for their own negligent actions, but their personal assets are not at risk for the negligent actions of the other partners.
LLPs started in the U.S. in the early 1990s. They were endorsed for use in Canada by the federal Standing Committee on Banking, Trade and Commerce in 1998 and by the Uniform Law Conference of Canada in 1999. Ontario was the first province to adopt LLP legislation in 1998, with Alberta following shortly after. LLP legislation was brought into force in Quebec in 2000, Saskatchewan in 2001, Manitoba in 2002, New Brunswick in 2003, Nova Scotia in 2004 and British Columbia in 2005.
The proposed amendments place no restrictions on the types of businesses able to register as LLPs. To obtain and maintain LLP status, a partnership must register at the Corporate Registry, notify clients of their change in status, include the letters “LLP” in their firm name, and make a list of partners available to the public on request.
A discussion paper and the draft legislation are available at www.gov.pe.ca/oag. Anyone wishing to receive this material in paper format should call (902) 368-4542. Written comments are to be submitted to the Office of the Attorney General by October 21, 2005.