Section 46Part 6 — Limited Partnerships
Definition and constitution of limited partnership
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A limited partnership may be established in the Islands for any lawful purpose or purposes, to be carried on either within the Islands or elsewhere by two or more persons upon the terms, with the rights and powers, and subject to the conditions, limitations, restrictions and liabilities herein mentioned.
A limited partnership may consist of any number of persons but shall include —
one or more persons called general partners, who shall be liable for all debts and obligations of the firm; and
one or more persons called limited partners, who shall at the time of entering into such partnership contribute thereto in actual cash payments, a specific sum as capital and who shall not be liable for the debts or obligations of the firm beyond the amount so contributed.
A limited partner shall not during the continuance of the partnership, either directly or indirectly, draw out or receive back any part of that limited partner's contribution in the shape of dividends, profits or otherwise, and if that limited partner does so that limited partner shall forthwith repay the same and until that limited partner does so that limited partner shall be liable for the debts and obligations of the firm up to the amount so drawn out or received back: Provided that a limited partner may receive lawful interest annually on the sum contributed by that limited partner if the payment of such interest does not reduce the original amount of that limited partner's capital.
A body corporate may be a general or a limited partner.
Defined Terms
general partnerslimited partners