Bekanon Limited Partnership
The relationship between Henvey Inlet First Nation and Bekanon Lease Management Corporation is defined in a Partnership Agreement. The Partnership shall lease the entire lands from the Crown. This allows the sub-leasing of parcels of the land to third parties and management of those subleases only. This Partnership shall not carry on any other business.
This Limited Partnership has some unique features intended to protect the Band and Band Lands.
It has a General Partner and a Limited Partner. The Band being the Limited Partner can't be sued for normal business activities of the General Partner. The General Partner, the Bekanon Lease Management Corporation, carries on the business of leasing lands only and the Band is protected from any liabilities created during the normal business of leasing providing the business of leasing is carried on at “arms length”. In a way the Band should be thought of as a “silent” partner who leaves all of the management obligations to the Corporation.
While the level of protection provided by the proposed legal structure provides a high level of protection, which is desirable, it also creates complex legal issues.
It is highly recommended that business management workshops be conducted regularly to ensure that the business activities of this Partnership and that of the Band are kept entirely separate otherwise the Band could inadvertently expose itself to unnecessary liabilities.