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Public Affairs Media Releases on the CICA Web Page
Government
Affairs Limited Liability Partnership Update LLP enabling legislation and regulations became effective in New Brunswick on January 1, 2004. As such, upon registration as an LLP, the personal assets of non-negligent partners will be beyond the reach of creditors. All partnership assets, including insurance and capital accounts as well as all personal assets of negligent partner(s), remain available to satisfy claims of creditors. Full shield protection is offered under the New Brunswick legislation - protection from all debts and liabilities of partnership (rather than just professional claims for negligence/malpractice - partial shield approach). Only eligible profession (i.e. lawyers, accountants, dentists, doctors, engineers etc.) governed by statute are entitled to register as an LLP. In addition, the governing body of each eligible profession must sanction that specific profession to be carried on via LLP. The NBICA Council has authorized its members and firms to carry on the practice of public accounting in New Brunswick through an LLP. The legislation recognizes the need to continue to protect the public interest. The partnership continues to be liable for the acts (i.e. errors & omissions) of all partners. Each LLP must carry mandatory liability insurance, and the limits of liability insurance coverage are to be determined by governing body of eligible profession rather by each member of eligible profession. If minimum liability insurance coverage is not maintained, LLP protection will automatically lapse. Finally, firms registering as an LLP must take appropriate steps to provide notice to clients and the public at large, including ensuring that the partnership name includes the words "Limited Liability Partnership" or abbreviation "LLP", and sending letters to clients and providing newspaper ads advising of the change of status to an LLP. The required forms to register as an LLP can be obtained as follows: Corporate Affairs Please draw your attention to Box #4 re: Form 7.1 Certificate of Designation. The proper name of our governing legislation is the “Chartered Accountants Act 1998”. If there are any questions, please contact Jack Blackier, LL.B., FCA at your convenience.
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