For a Louisiana partnership in commendam, what duties/responsibilities is the partner in commendam allowed to have and what activities, if any, must the partner in commendam avoid in order to preserve his/her limited liability protection

Question

Remington Stephens

Business

1 January, 07:35

For a Louisiana partnership in commendam, what duties/responsibilities is the partner in commendam allowed to have and what activities, if any, must the partner in commendam avoid in order to preserve his/her limited liability protection

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Answers (1)

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Audrina Schmitt · Answer 1

Answer:Advising the partners about the business, attend the partnership meetings, vote in matters concerning the partnership, participate in the winding up of the partnership, participate in taken decisions about a change in the nature of the partnership business. (b) if partnerships in commendam participate in the running of the business he is only liable to persons who transact business with the partnership.

Explanation:

This is a form of partnership which is made up of one or more general partners whose liabilities is limited to the amount of their capital contribution to the business. A partnership in commendam does not participate in the running of the business. The name of partnership in commendam must appear in the partnership deed that such a partner is not a general partner. The partnership in commendam is allowed to perform duties such as giving advise to the General partners about the business, attending the partnership meetings, vote in matters concerning the partnership, participate in the winding up of the partnership, participate in taken decisions about the change in the nature of the partnership business.