LIMITED PARTNERSHIPS
Limited partnerships are companies established for the purpose of operating a commercial undertaking and where certain shareholders have limited liability and certain shareholders have unlimited liability towards creditors. As such, limited partnerships must have at least two shareholders. It is worth noting that if a limited liability or joint stock company were to become a shareholder in a limited partnership, such company may only assume limited liability towards creditors. The shareholders with unlimited liability may stipulate all types of assets and rights as share capital, including cash, real estate and commercial good-standing, whereas the shareholders with limited liability may only stipulate assets and rights which are cash-convertible. Limited partnerships may only be managed and represented by the shareholders with unlimited liability. Furthermore, shareholders with limited liability may not hinder the acts or actions of the shareholders who have unlimited liability and management rights. In this regard, shareholders with limited liability only have voting rights with respect to actions and transactions which are not in the ordinary course of business and affect relations between the shareholders, such as mergers and changes to the articles of association.
