Introduction Overview Chapter 3: Limited partners and members of limited liability partnerships Section 58: Meaning of “limited partner”
225.This section defines “limited partner” for the purposes of sections 56 and 57. It is based on section 118(2) of ICTA.
226.A limited partner of a limited partnership registered under the Limited Partnership Act 1907 is someone who is not entitled to take part in the management of the firm’s business and is not liable for the debts or obligations of the firm beyond a certain limit. A limited partner of any other firm is someone who is similarly not entitled to take part in management and not liable for debts or obligations in accordance with the rules applying to the firm in question.
227.Subsection (4) is introduced as part of drafting in terms of a company’s “contribution to the firm” in place of “contribution to the trade”. See Change 8 in Annex 1.