Partnership (Hong Kong)
Encyclopedia
A partnership in Hong Kong is a business entity formed by the Partnerships Ordinance, which defines a partnership
as "the relation between persons carrying on a business in common with a view of profit" and is not a joint stock company
or an incorporated company. If the business entity registers with the Registrar of Companies
it takes the form of a limited partnership defined in the Limited Partnerships Ordinance. However, if this business entity fails to register with the Registrar of Companies, then it becomes a general partnership
as a default.
the general partner
s are liable for all debts and obligations of the firm while the limited partners are liable only for the capital they contributed to the firm.
In a limited partnership the general partners manage the firm while the limited partners may not. And should limited partners do so, then they become personally liable for the debts of obligations of the firm in the same manner as a general partner.
Unless a partnership agreement between the partners demand otherwise, (1) a majority of the general partners decide ordinary business matters, (2) a limited partner may assign his partnership interest, (3) a limited partner cannot dissolve
a partnership, (4) the introduction of a new partner does not require the consent of the existing limited partners.
Partnership
A partnership is an arrangement where parties agree to cooperate to advance their mutual interests.Since humans are social beings, partnerships between individuals, businesses, interest-based organizations, schools, governments, and varied combinations thereof, have always been and remain commonplace...
as "the relation between persons carrying on a business in common with a view of profit" and is not a joint stock company
Joint stock company
A joint-stock company is a type of corporation or partnership involving two or more individuals that own shares of stock in the company...
or an incorporated company. If the business entity registers with the Registrar of Companies
Registrar of Companies
The Registrar of Companies for England, Wales & Scotland is the official responsible for Companies House, which deals with all filings relating to the Companies Act 1985 to 2006, ensuring the document filings are kept up-to-date and deals with any breaches of the Companies Act.The Registrar Of...
it takes the form of a limited partnership defined in the Limited Partnerships Ordinance. However, if this business entity fails to register with the Registrar of Companies, then it becomes a general 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:...
as a default.
Limited Partnership
In a limited partnershipLimited partnership
A limited partnership is a form of partnership similar to a general partnership, except that in addition to one or more general partners , there are one or more limited partners . It is a partnership in which only one partner is required to be a general partner.The GPs are, in all major respects,...
the general partner
General partner
General partner is a legal term used to describe a person who joins with at least one other person to form a business. A general partner has responsibility for the actions of the business, can legally bind the business and is personally liable for all the business's debts and obligations.General...
s are liable for all debts and obligations of the firm while the limited partners are liable only for the capital they contributed to the firm.
In a limited partnership the general partners manage the firm while the limited partners may not. And should limited partners do so, then they become personally liable for the debts of obligations of the firm in the same manner as a general partner.
Unless a partnership agreement between the partners demand otherwise, (1) a majority of the general partners decide ordinary business matters, (2) a limited partner may assign his partnership interest, (3) a limited partner cannot dissolve
Liquidation
In law, liquidation is the process by which a company is brought to an end, and the assets and property of the company redistributed. Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation...
a partnership, (4) the introduction of a new partner does not require the consent of the existing limited partners.