Many 50/50 shareholders refer to themselves as
"partners", when in fact each owns half of the shares in
a company, which owns the business. Partners on the other hand,
hold a direct ownership interest in the business. It is important
to distinguish between 50/50 shareholders and partnerships as the
law governs each of them differently. Learn more about 50/50 Shareholders on our website. The
Partnership Act, RSBC 1996, c 348 and the common law
governs partnerships as discussed below.
What Exactly is a Partnership?
A partnership is a relationship where two or more persons are
carrying out a business in common with a view of profit, as per s.
2 of the Partnership Act. Whether a partnership has been
formed can be the subject of litigation, as was the case involving
the potential acquisition of the Vancouver Canucks in Blue Line
Hockey Acquisition v. Orca Bay Hockey Limited Partnership,
2009 BCCA 34.
