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Article
Limited Liability Partnership in China - A Long Way Forward
International Company and Commercial Law Review (2010)
  • Lin Lin, National University of Singapore
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,
  • LLP,
  • China
Disciplines
Publication Date
2010
DOI
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2261414
Citation Information
Lin Lin. "Limited Liability Partnership in China - A Long Way Forward" International Company and Commercial Law Review Vol. 21 Iss. 7 (2010) p. 259 - 265
Available at: http://works.bepress.com/lin-lin/8/