What happens when a limited partnership fails to substantially comply with all the requirements of the state statute regarding limited partnerships?.

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21-10-2022
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What happens when a limited partnership fails to substantially comply with all the requirements of the state statute regarding limited partnerships?.

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NikitaPatel213 NikitaPatel213 · Answer 1 · 2022-10-29T09:08:22+02:00

A limited partnership loses its protection regarding the liability limits when it fails to substantially comply with all of the provisions of the state statute governing limited partnerships. They are thereby subject to limitless responsibility.

A limited partnership is what?

A limited partnership is composed of two or more parties, comprising a general partner and at least one limited partner. Up to the extent of their investment, limited partners are exclusively responsible for the partnership's debts.

The general partner usually manages the limited partnership; the limited partner frequently has little knowledge of or involvement in the partnership's activities.

Learn more about Limited Partnerships:

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