A partnership governed by the Limited Partnership Act 1907. Intended originally as an alternative to a limited company, it is similar to an ordinary partnership except that certain partners have a limited liability. The liability is limited to the amount the limited partner contributes on becoming a partner. He can not dispose of his share or withdraw it, take part in the general management of the business or bind the firm. He cannot dissolve the partnership or object to the introduction of another partner. The limitation of his actions is obviously a considerable price to pay for the limitation of liability. The general partners have the last word in just about everything. There must be at least one general partner with unlimited liability. A limited partnership must be registered with the Registrar of Companies and the registration must be accompanied by certain particulars. These are (1) the firm’s name, (2) the general nature of the business, (3) the principal place of business, (4) the full names of the partners, (5) the term of the partnership, (6) the date of commencement, (7) a statement that the partnership is limited, which also names the limited partners, (8) the amount paid in by each limited partner, and the manner of payment (cash or otherwise).
|Reference: The Penguin Business Dictionary , 3rd edt.|