Limited partnerships

Abstract

[Extract] Limited partnerships may be formed in all jurisdictions except the Australian Capital Territory and the Northern Territory. They are comprised of at least one limited partner and at least one general partner. Limited partners are partners who contribute to the capital of the partnership but who do not take part in its management, who cannot bind the firm and whose liability to contribute to the debts or obligations of the partnership is limited to their capital contribution. The obligations of the general partners in a limited partnership are similar to those of partners in an ordinary partnership and their liability is unlimited. Regulations may be made by the respective State Governors under the limited partnerships legislation.