Victorian Consolidated Legislation

Partnership Act 1958 - SECT 17

Improper employment of trust property for partnership purposes

17. Improper employment of trust property for partnership purposes

If a partner being a trustee improperly employs trust-property in the business
or on the account of the partnership no other partner is liable for the
trust-property to the persons beneficially interested therein: Provided as
follows-

(1) This section shall not affect any liability incurred by any partner by
reason of his having notice of a breach of trust; and

(2) Nothing in this section shall prevent trust-money from being followed and
recovered from the firm if still in its possession or under its control.