Limited partnership in USA and Uk Essay Example | Topics and Well Written Essays - 1000 words

Limited checkmateship in USA and Uk - Essay ExampleIn both countries, the formation of a limited partnership is between two or more persons with the aforesaid(prenominal) subscriber line objective. The general idea behind a limited partnership is that there is at to the lowest degree one partner who will control the full burden of the partnerships debt, while at least one partner will be dormant. The dormant partner will only bear a portion of the partnerships debt that is, up to his/her contribution to the partnerships capital. Limited partners shall non have any managerial authority. The UK faithfulness on limited partnership sets out some exculpated restrictions on the passive partners. These partners shall not (Osborne, 2002)If the limited partners fail to adhere to the above restrictions, they shall bear all the debts of the business up to the amount drawn out, while participating in the management of the familiarity. The UK company law makes it clear that one cannot b e both a general partner and a limited partner at the same time. Any individual or a legal body can become a partner in a limited partnership, either as a general partner or as a limited partner.Both countries require that a limited partnership be registered to keep in line that it is not for fraudulent activities. In the UK, all partners in a limited partnership are as liable for any debts incurred until registration (Osborne, 2002). In Saudi Arabia, joint partnerships will only be considered as legal after registration. Every joint partnership formed and registered under the countrys company law shall be regarded as a Jordanian corporate institution.According to the article (42) of company law a partnership address should only consist of the general partners names. If a limited partners name is mentioned in the address, he/she ceases to be a passive partner. He/she becomes a general partner with the full responsibility of the business liabilities. The appropriate name should