BERR is planning to replace the Limited Partnerships Act 1907 under the legislative reform initiative. One driver behind the proposals is the need to keep the UK's attractiveness as a place to set up investment funds. BERR thinks the funds market needs more legal certainty on some aspects of LP operation. Its proposals relate to:
- establishing, registering and deregistering an LP;
- limited partner liability to third parties; and
- rights and duties of limited and general partners in an LP.
In particular, the new law would keep the restriction on limited partners taking part in the firm's management (or incurring unlimited liability if they do). However, following Law Commission proposals there would be a statutory list of activities limited partners are allowed to do that fall short of management. Closing date for responses is 21 November.