Restrictions on liability of former partners or employees by “holding out”

(1) A former partner is not personally liable for a debt or obligation incurred by the partnership as a result of any dealings between the partnership and a person who deals with the partnership relying on representation made to the person that a former partner is a partner in a firm at the time of the dealings if—
(a) the representation is made to the person more than one year before the former partner ceased to be a partner; or
(b) a notice has been issued by the partnership prior to any dealings with the person that the former partner has ceased to be a partner.
(2) A former partner is not personally liable for any obligation incurred by the partnership if the partnership business—
(a) continues to be carried on in the same partnership name; or
(b) continues to include the former partner’s in its list of partners after he has ceased to be a partner.
(3) In this section, references to a partner in a partnership include an employee of the partnership.