As opposed to U. S. partnership law, which holds property brought into or acquired by the partnership becomes property of the partnership; in Quebec, you can bring the property into a partnership and have it considered separate from other partnership property (Kubasek, M. , Herron, Dhooge, & Barkacs, 2013). Under the Civil Code of Quebec (CCQ), in the area of contributing property to the partnership; made by the transfer of the owner’s rights, the contribution of the property establishes a distinct separate level of partnership property within the partnership (Boodman, 2010).
When a partner brings in property to a partnership; the property, is separate from other partnership property as opposed to the property becoming co-owned among the members of the partnership. In the case of a bankruptcy, while the partners are still liable for the debts of the partnership; the partnership cannot liquidate property brought into the partnership by a partner to pay the debts of a partnership.
Additionally, the creditors of a partner will not be able leverage the property brought into a partnership in the case of a charging order, unless that the property was brought into the partnership by the partner who sold them their partnership interest. The Quebec law is distinctly different from U. S partnership law as it allows a partner to bring in assets; for the benefit of the partnership, while still keeping them separate from the partnership. This protects the assets the partner; brought in to the partnership, from loss if the partnership goes bankrupt.
The intent of the law is that a partner should not necessarily become personally bankrupt just because the partnership became bankrupt.
References Boodman, M. (2010, December 21). Who Owns a Quebec Partnership? Retrieved August 2013, 2013, from Corporate/Commercial Law – Canade: http://www. mondaq. com/canada/x/117142/Corporate+Commercial+Law/Who+Owns+a+Qubec+Partnership Kubasek, N. , M. , B. , Herron, D. , Dhooge, L. , & Barkacs, L. (2013). Dynamic Business Law. New York: McGraw-Hill Irwin.