Limited Liability Partnership in China - A Long Way Forward

7 International Company and Commercial Law Review 259, 2010

19 Pages Posted: 7 May 2013 Last revised: 14 Nov 2015

See all articles by Lin Lin

Lin Lin

National University of Singapore (NUS) - Faculty of Law

Date Written: March 6, 2010

Abstract

In August 2007, a new business vehicle, the Special General Partnership (“SGP”) was adopted under the revised Partnership Enterprise Law of the People’s Republic of China. The SGP resembles an overseas Limited Liability Partnership in that it shields co-partners from liabilities due to the misconduct or negligence of other partners. The introduction of the SGP increases the options available for professional practitioners in China.

The article highlights key elements of China’s introduction of the SGP and examines the uncertainties over the protection shield of partners. It explains the safeguards for creditors concerning financial reporting obligations and professional insurances. It concludes that the fact that the SGP does not grant full protection shield to partners may undermine the advantage of the SGP. It suggests that more rules must be provided to balance the interests of the partners and the creditors so as to facilitate the development of Chinese professional services market.

Keywords: Limited Liability Partnership, China, Partnership Law

Suggested Citation

Lin, Lin, Limited Liability Partnership in China - A Long Way Forward (March 6, 2010). 7 International Company and Commercial Law Review 259, 2010, Available at SSRN: https://ssrn.com/abstract=2261414

Lin Lin (Contact Author)

National University of Singapore (NUS) - Faculty of Law ( email )

469G Bukit Timah Road
Eu Tong Sen Building
Singapore, 259776
Singapore

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