Document ID: chunk:federal_register_of_legislation:C2004A01183:clause:1_140z
Version: federal_register_of_legislation:C2004A01183
Segment Type: clause
Provision Reference: sch 1 cl 140Z
Character Range: 17673–19258

140Z  New partners

 (1) If a person becomes a partner in a partnership after it is approved as a sponsor, the new partner may elect to accept each sponsorship obligation that:
 (a) would, but for subsection 140Y(1) or any previous application of this section, be imposed on the partnership; and
 (b) arises after the new partner makes the election.

 (2) If the new partner accepts an obligation:
 (a) the obligation is imposed on the new partner instead of on the partnership; and
 (b) the obligation is imposed on the new partner regardless of whether it is also imposed on any other partner or retired partner.

 (3) If:
 (a) a sponsorship right would, but for subsection 140Y(2) or any previous application of this section, be exercisable by a partnership; and
 (b) the right arises after the new partner makes an election under subsection (1) and does not arise because of a sponsorship obligation that existed before the election was made;
the right is:
 (c) exercisable by the new partner instead of by the partnership; and
 (d) exercisable by the new partner regardless of whether it is also exercisable by any other partner or retired partner.

 (4) If:
 (a) a new partner accepts a sponsorship obligation by election under subsection (1); and
 (b) a liability to pay an amount arises from the obligation;
then the new partner is jointly and severally liable to pay the amount together with:
 (c) any other partner on whom the liability is also imposed under this section or section 140Y; and
 (d) any retired partner who remains liable for the amount under section 140ZA.