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Corporate Service - China

Question

Q&A Regarding Partnership Enterprise (7)

Answer
Q:
Can the limited partner conduct transactions with the limited partnership enterprise?
A:
The limited partner may conduct transactions with the limited partnership enterprise; Unless otherwise agreed in the partnership agreement.

Q:
Can the limited partner engage in businesses that compete with the limited partnership enterprise?
A:
The limited partner may engage in businesses that compete with their limited partnership enterprise either on their own or in cooperation with others; Unless otherwise agreed in the partnership agreement.

Q:
Do the limited partner need to assume the debts of the partnership enterprise after joining the partnership enterprise?
A:
The newly joined limited partner shall be liable for the debts of the limited partnership enterprise before joining the partnership enterprise to the extent of the amount of capital subscribed by the limited partner.

Q:
Can the limited partner transfer his property in the limited partnership enterprise?
A: The limited partner may transfer his share of property in the limited partnership enterprise to a person other than partners in accordance with the partnership agreement, but shall notify the other partners 30 days in advance.

Q:
Do the limited partner still have to assume the debts of the limited partnership enterprise after withdrawing from the limited partnership enterprise?
A: The withdrawing limited partner shall be liable for the debts of the limited partnership enterprise incurred due to reasons prior to his withdrawal on the limit of the property retrieved from the limited partnership enterprise at the time of his withdrawal.

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