Legal Regulation Of Limited Partners Abuse Limited Liability

In order to promote development of the venture capital business, Partnership Act revised in2006increases s limited partnership which is a form of enterprises organization. Professionalmanagement organizations or single persons who have good sense of investment are generalpartners. They take unlimited and joint liability, exercising the right of implementation of thepartnership. As the major people who invest, limited partners enjoy the partnership income, takelimited liability for corporate debt, don’t represent the partnership externally, and also don’tparticipate in the enterprise’s operation and management. Establishment of limited partnershipsystem in the legal system of our country, is to meet the need of market economy development inChina. But our laws more constraint behavior of general partners, and ignore the restrictions on theright of limited partners. The tommyrot of system design provides the conditions for limitedpartners abusing limited liability against the interests of general partners and the creditors. LegalRegulation of Limited Partners Abuse Limited Liability is imperative. This article will expandexposition from the following four aspects of deals.Firstly, discussing necessity of regulating limited partners abuse limited liability. This is thebasis of the writing of this article. Only existing the necessity of such regulation, It will be possibleto expand further discussion below. Such necessity is not only with Practical significance, and it isreasonable in theory.Secondly, Comparing limited partners with shareholder on abusing limited liability.Identifying similarities and differences between the two sites must be established on the basis offull knowledge about the two systems. Due to the limited partnership system constructing morelater, experience on Regulation of shareholders abuse limited liability lay the foundation ofLooking for ways to regulate limited partners abuse limited liability Legally.Thirdly, researching and summarizing regulation system of limited partners abuse limitedliability in other countries (and regions). Because limited partnership system have differentManifestations in common law and civil law, I have to distinguish common law and civil law toresearch and summarize, finding provisions that China can learn from and use for reference. Thispart of the article Play a role in data collection. Fourthly, against our existing systems and legal requirements on regulating limited partnersabuse limited liability, Combining with the relevant provisions of the other countries (andregions).,finding insufficient of china’s legal provisions, and trying to make perfectrecommendations in this connection. This part based on the previous three parts. By means ofextensively refer to the research results on the system at home and abroad, I present my views andrecommendations, expecting to bringing a bit Practical significance.