Abs %20partnership%20acts

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1 ALTERNATIVE BUSNESS STRUCTURES – THE PARTNERSHIP ACTS By Chantal Simpson With the introduction of the Partnership (General) Act and the Partnership (Limited) Act (together “the Partnership Acts”), one common question among attorneys is whether this new legislation creates additional avenues through which attorneys may carry on their practice. While the Partnership Acts pave the way for such Alternative Business Structures, they by themselves have not effected a change in the manner in which Attorneys can do business in Jamaica. WHAT IS THE EFFECT OF THE PARTNERSHIP ACTS? The Partnership (General) Act The Partnership (General) Act codifies the common law principles that apply to the operation of partnerships. It also introduces two new types of General Partnerships, the General Partnership with Separate Legal Personality and the Limited Liability Partnership. Codification of the common law Part II of the Partnership (General) Act codifies the common law principles that currently govern general partnerships in Jamaica and when it comes into force, it will apply to all existing partnerships. Introduction of General Partnership with separate legal personality and Limited Liability Partnerships Part III of the Partnership (General) Act, provides for the formation of partnerships with separate legal personality. These partnerships will have the right to sue and defend an action, own land and enter into contracts in their own name. Part V of the Partnerships General Act allows for the formation of limited liability partnerships. These are general partnerships with separate legal personality and in which the liability of the partners is limited to the amount of their capital contribution to the partnership. Partnership (Limited) Act The key difference between a general partnership and a limited partnership is the fact that a limited partnership has at least one limited partner and at least one general partner while a general partnership

Chantal Simpson-ABS- Partnership Acts.doc


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