Interpretation of The Normal Commercial Principles of The Partnership and The Principles of The Objectives of The Registered Partnership That Affect The Management of The Work of The Managing Partner Who Binds The Partnership

Abstract

          A limited partnership is a business organization that has the characteristics of a type of partnership. That is, a limited partnership must have the following general characteristics: It is in the nature of a contract in which two or more people agree to carry out a business together and the objective is to share the profits obtained from that business.

          A limited partnership has one important special feature: a limited partnership divides its partners into two types: A partner with unlimited liability and a partner with limited liability. The partner with unlimited liability has unlimited liability for the debts of the corporation. While a partner with limited liability has liability for the debts of the partnership limited only to the amount of shares he or she accepts to invest.

          Due to the difference in the liability of the partners in the two types of partnership, Civil and Commercial Code Section 1087 therefore states that " limited partnership You said that only partners with unlimited liability must be managing partners.” From the said provision, partners with limited liability have limited liability not exceeding the amount of money or shares that they accept to invest in the partnership. Therefore, care may be taken in managing the work of the partnership at a level that is unreasonably low and may cause damage to the limited partnership and all other partners.