Public Consultation on Limited Partnerships and Limited Liability Partnerships

The study team on Limited Partnerships ("LPs") and Limited Liability Partnerships ("LLPs") is seeking public feedback on its preliminary views regarding the legal framework governing LPs and LLPs in Singapore. Respondents are requested to send in their comments by 31 July 2003.

Background

The Company Legislation and Regulatory Framework Committee ("CLRFC") had recommended that legislation be enacted to introduce LPs and LLPs in Singapore. These two additional business structures would broaden the menu of legal structures available in Singapore for domestic and international business. The LP and LLP structures would be available to all types of businesses. This would help to attract foreign businesses to Singapore and at the same time enable our local firms to compete more effectively overseas.

The study team on LPs and LLPs was set up by the Ministry of Finance in November 2002. Its terms of reference are to work out the details of the legal framework governing LP and LLP. Please see Appendix for a list of the study team members. The team is co-chaired by Mr Ronnie Quek Cheng Chye, Partner of Allen & Gledhill and Mr Quek See Tiat, Partner of PricewaterhouseCoopers.

An LP consists of one or more general partners and one or more limited partners. The limited partners enjoy limited liability but are unable to take part in the management of the firm. LPs are used for private equity and fund investment businesses.

An LLP offers all its members limited liability while allowing them to retain the flexibility of operating the LLP as a traditional partnership. An LLP partner is not personally liable for the malpractice of other partners in the firm. However, he will be personally liable for his own negligence and misconduct.

The team would like to invite the business community, professionals, academics and all interested persons to comment on its preliminary views in the following areas:

Registration Requirements
Reporting Requirements
Liability of a Partner in a LP/LLP
Dissolution and Winding up

Public Consultation

The team's consultation papers on LP and LLP will be available at MOF's website at http://www.mof.gov.sg/cor/public_LP-LLP.html from 18 June 2003 to 31 July 2003. The public may send in their comments via email to MOF_LP_LLP@mof.gov.sg or via fax to 6337 4134.

Appendix: List of members of the study team on LPs and LLPs

Appendix

COMPOSITION OF THE STUDY TEAM ON LIMITED PARTNERSHIPS AND LIMITED LIABILITY PARTNERSHIPS

Co-Chairman

Mr Quek See Tiat, Partner,
PricewaterhouseCoopers, Singapore

Co-Chairman

Mr Ronnie Quek Cheng Chye, Partner,
Allen & Gledhill

Members

Mr Chee Hong Tat, Head(RS), MOF
Ms Julie Huan, State Counsel,
Attorney-General's Chambers

Mr Ong Pang Chan, Head(EP 2), MOF

Ms Suria Suriakumari Sidambaram,
Senior Asst. Registrar, RCB

Ms Toh Wee San,
Head(Development and Planning Division), RCB

Study Team on Limited Partnerships and Limited Liability