Gōmei gaisha
Encyclopedia
In a gō-mei gaisha all partners are jointly and severally liable for any liability
incurred by the partnership, similar to an unlimited partnership
. The partners¹ liability is unlimited, and creditors can go after each partner¹s personal assets if the assets of the partnership are insufficient to meet the obligations. The law divides legal relations of the Go-mei Gaisha into two categories: internal relations specified in Section 2 of the Go-mei Gaisha Law and external relations specified in Section 3 of the Go-mei Gaisha Law. Internal relations refers to relations between the partnership and the partners as well as relations among partners. The Commercial Code
specifies that both the articles of incorporation
and the Commercial Code govern these internal relations, but it has been commonly interpreted that the articles of incorporation overrides the Commercial Code when determining these rights. External relationship refers to relations between the partnership and third parties as well as between a partner and third parties. External relations are governed by law to protect third parties by providing a fair, stable, and foreseeable legal relations.
Liability
A liability can mean something that is a hindrance or puts an individual or group at a disadvantage, or something that someone is responsible for, or something that increases the chance of something occurring ....
incurred by the partnership, similar to an unlimited partnership
General partnership
In the commercial and legal parlance of most countries, a general partnership or simply a partnership, refers to an association of persons or an unincorporated company with the following major features:...
. The partners¹ liability is unlimited, and creditors can go after each partner¹s personal assets if the assets of the partnership are insufficient to meet the obligations. The law divides legal relations of the Go-mei Gaisha into two categories: internal relations specified in Section 2 of the Go-mei Gaisha Law and external relations specified in Section 3 of the Go-mei Gaisha Law. Internal relations refers to relations between the partnership and the partners as well as relations among partners. The Commercial Code
Commercial code
Commercial code might refer to:*Commercial code , a set of laws designed to regulate comemrce*Commercial code , a code used in telegraph and telex messages....
specifies that both the articles of incorporation
Articles of Incorporation
The Articles of Incorporation are the primary rules governing the management of a corporation in the United States and Canada, and are filed with a state or other regulatory agency.An equivalent term for LLCs in the United States is the Articles of Organization...
and the Commercial Code govern these internal relations, but it has been commonly interpreted that the articles of incorporation overrides the Commercial Code when determining these rights. External relationship refers to relations between the partnership and third parties as well as between a partner and third parties. External relations are governed by law to protect third parties by providing a fair, stable, and foreseeable legal relations.