2022, Vol. 2, Issue 1, Part A
Exploring the scope of liability shield in a limited liability partnershipAuthor(s):
Onyeka Christiana Aduma and Ngozi Eunice EmekaAbstract:
The biggest benefit of forming a Limited Liability Partnership is the limited legal liability which allows partners to limit their liability while organizing themselves internally as a partnership. Unlike limited partnership or general partnership, a Limited Liability Partnership does not expose its partners to unlimited legal liability. The liability of the Limited Liability Partnership is limited to the amount that the partners contributed to the limited liability partnership for its formation. Using a doctrinal research methodology, this paper analyzed the scope of liability shield in a Limited Liability Partnership. The writers found out that although, Companies and Allied Matters Act, 2020 provided for limited liability of partners in Limited Liability Partnership, its applicability to debts owed to individual partners remains a problem. As such, the writers therefore recommended that there should be a provision in CAMA clearly extending the application of shield of liability to debts owed to individual partners by the Limited Liability Partnership on the ground that the exclusion of such debts from the coverage of limited liability will contravene the legislative intent on the provision of Limited Liability Partnership.Pages: 11-15 | Views: 319 | Downloads: 142Download Full Article: Click Here
How to cite this article:
Onyeka Christiana Aduma, Ngozi Eunice Emeka. Exploring the scope of liability shield in a limited liability partnership. Int J Civ Law Legal Res 2022;2(1):11-15.