Incorporated limited partnerships |
In 2004, the Queensland Government amended the Partnership Act 1891 to make Queensland more attractive for new international venture capital investment, particularly in biotechnology and information technology.
It established a new incorporated limited partnership (ILP), a business structure that removes some of the heavy financial and management risks for limited partner investors, helping to protect their personal assets.
Features of incorporated limited partnerships
An ILP is a specialised type of body corporate in Queensland with a separate legal identity to that of its investor partners.
All ILPs are registered with us and consist of at least one general partner and at least one limited partner.
Both general and limited partners can be individuals, corporate entities or a partnership.
The general partner is responsible for managing the ILP business, while the limited partner only has to commit an agreed amount of capital or property to the business.
As the ILP is a separate legal entity, it is responsible for all of its debts and obligations. However, where an ILP cannot meet those debts or obligations, the general partner must meet the shortfall.
A limited partner has no liability for the debts or obligations of the business. A limited partner cannot take part in managing the business, except in certain circumstances that allow a limited partner investor to monitor and oversee the use of their money.
Apart from these situations, if a limited partner does participate in the management of the ILP´s business, that partner will be treated the same way as a general partner and must satisfy debts and obligations that cannot be met by the ILP itself.
Queensland ILPs are recognised outside Queensland.
Last reviewed 01/07/2011 |
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