The Limited Partnerships (Guernsey) (Amendment) Law 1997 comes into force on May 1 2001 and amends the Limited Partnerships (Guernsey) Law 1995. The latter came into force on February 1 1996 and was primarily aimed at providing an investment vehicle familiar to North American investors.
The significance of the amending legislation is that it permits a limited partnership to have legal personality if, but only if, at the time of registration, the general partners so elect.
The motive for the amendment was twofold. Firstly, it is important for local tax reasons in certain jurisdictions that limited partnerships have legal personality, and secondly, Lloyds of London will only accept 'persons' as names.
Existing limited partnerships registered prior to May 1 2001 are permitted to have legal personality if, within a period of three months beginning on May 1 2001, the general partners so elect.
If such an election is made the general partners must, within a period of three months, file with the Greffier (the local company registrar) a declaration signed by any one or more of the general partners stating that the limited partnership shall have legal liability.
The name of the limited partnership which has legal personality shall have the word 'Incorporated' or any other similar expression approved in writing by the Guernsey Financial Services Commission in its name.
For further information on this topic please contact Ian Kirk at Collas Day by telephone (+44 1481 723191) or by fax (+44 1481 724074) or by e-mail ([email protected]).
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