Partnership Law

Masters
Essay
Miscellaneous
Pages 12 (3012 words)
Download 0
The fundamental difference between a partnership, a LLP and a private limited company is that in the former, a partner is exposed to a potential liability for all the debts and obligations of the firm"
The scope of this paper is to examine how a partnership differs from other forms of organisations like limited liability partnership and private limited company in terms of liability fastened to the shares held by individuals or entities.

Introduction

Partners' liabilities are differently prescribed in that liability caused by any error of one partner need not affect the other partners. State registration is required but some of the states stipulate that partners should take liability insurance or has adequate assets to meet likely claims. This is very much applicable to firms of professionals like accountants, lawyers, architects. Not all the states recognize them. A partner's interest in an LLP can be assigned to third parties in which the assignee gets only the financial benefit and he can not take part in the management nor can he become a partner. There can be more than two partners. An LLP will stand dissolved on the death of a partner and on filing dissolution deed with the Sate authority. A clear advantage of an LLP is that it need not conduct annual meetings and maintain minutes of meetings though it has the features of a limited company. Profit is not taxable at the hands of the firm but that of the individual partners. One disadvantage is that a partner of an LLP can bind his share without the other partners. ...
Download paper
Not exactly what you need?

Related papers

Family Law: civil partnership
This is clear from the Matrimonial Causes Act of 1973. Pursuant to Section 23 of the said Act, the Court may make several orders that relate to income, capital and property. It may order the payment of periodical payments by either party to the other, or it may also issue an order for the payment of lump sums. an order that either party to the marriage shall pay to the other such lump sum or sums…
Partnership Law
Partners' liabilities are differently prescribed in that liability caused by any error of one partner need not affect the other partners. State registration is required but some of the states stipulate that partners should take liability insurance or has adequate assets to meet likely claims. This is very much applicable to firms of professionals like accountants, lawyers, architects. Not all the…
Partnership Agreement
Except as Otherwise determined, all decisions shall be made by the partners whose capital accounts total a majority of the value of the capital accounts of all the partners…
Limited Liability Partnership
In a general format of partnership business it is a legal practice that all partners have unlimited liabilities with respect to their business debts and if one person is declared insolvent then the other partners are bound by law to pay for his debts, loans and liabilities from their own personal assets and property.…
Company Law partnership
In certain circumstances partnerships must be dissolved under the Partnership Act 1890: once a partnership contract is performed - eg it was for a fixed term or for a specific purpose; the death or bankruptcy of a partner; a partner assigns his share to a creditor to satisfy a private debt; any event which makes it unlawful for the firm to continue its business or to have the status of a…
Law and the Corporation
There are two types, one, as mentioned above is a Public Limited Company, and the other is a Private Limited Company, which as the name suggests cannot sell its shares to the general public. In the UK, the Companies Act permits several people to form a company for any business that is lawful. Private companies are the easiest kind of company to begin as well as run in their initial stages.…