Seanad debates

Friday, 6 November 2020

Investment Limited Partnerships (Amendment) Bill 2020: Report and Final Stages

 

9:30 am

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

Yes, if such a person controls 25% of the vote in the limited partner. I am not talking about the general partner who runs the whole business but the limited partner. Yes, he or she is a beneficial owner but it does not give him or her control of the general partnership that is solely in the hands of the general partner because such people have limited control, they are limited partners and, as we said already, they can have a participating vote in an advisory capacity, which is certainly not control. They can make their recommendation but they cannot tell the general partner what to do. The general partner makes a decision. As soon as a limited partner tries to make a decision, he or she loses the limited liability protection and could be deemed to be a general partner but he or she does not want to go there at all.

There is a difference between the control of a limited partner versus the whole question of a general partner, which is the person who actually runs the operation. There can be several limited partners, or any amount of limited partners, in the general partnership.

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