Unlimited Partnership Prepared by Afif Zarif Atef Toutanji Ziad Ballouz
Outline: Definition Formation Characteristics The management rights in the unlimited partnership: The winding up conditions of the unlimited partnership (dissolution and liquidation)
Definition The unlimited partnership is a form of a commercial company that addressed the concept of corporate personality recognized by the company’s partners. In this kind of partnership, the partner plays an important role in the company establishment.
Unlimited partnership Unlimited partners Unlimited liability. For the world of “partnership” means all its members are supposed to work in harmony with each other as partners who are liable for the firm successes and frailer.
Formation of the unlimited partnership: the unlimited partnership is allowed to have from two to ten partners and more. Thus, the partners have the right to add to their Membership, any new numbers of partners who are appropriate and capable. the contract of the unlimited partnership should be written in the state commercial register within a period of one month
The application for entry in the commercial register shall comprise the following: The name, the nationality and the domicile of each of the partners. The legal form of the unlimited partnership. The objects or the purpose of the unlimited partnership. The amount of the capital and the value of the contributions made by the partners. The date of formation of the unlimited partnership and its duration.
Characteristics the unlimited partnership As a partnership firm Name of the unlimited partnership Rules Relating to Partners The Partners Liability Partner’s parts As a firm having the Commercial recipe partnership company not as a corporation firm
As a partnership firm partnership company: the partner existence has more value than the financial materials, the concept of corporate personality is highly recognized from the members composing it the partner existence should be taken in concern in all the company roles and the corporation firm : financial materials is more important than the partner existence
Name of the unlimited partnership the names of each of the members who formed the unlimited partnership or a part of them, followed by the words “and Co. if there is a change amongst the members whose names appear in the unlimited partnership’s name, then the unlimited partnership name should be changed accordingly.
Rules Relating to Partners: all the partners should be committed to the contract clauses the court has the right to expel a member from the partnership upon the request of his fellow partners
The Partners Liability: Every partner is individually subject to an unlimited liability for all of the unlimited partnership’s depts, the partner is also subject on his individual property to pay for the company’s creditors a manger who is not a member of the unlimited partnership does not incur any such liability unless he exceeds the authority given to him.
Partner’s parts: The partnership’s agreement is based on natural confidence between the partners, the partner’s parts are not allowed to be transfer to another partner without taking the permission from all the partners. The partners of such kind of company are supposed to agree on the profits and the losses parts that the company will face
As a firm having the Commercial recipe: