Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 10: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her plans to update the current partnership law; and if she will make a statement on the matter. [40932/09]

Billy Kelleher (Cork North Central, Fianna Fail)
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The Company Law Review Group (CLRG) was asked, as part of its Work Programme for 2007, to examine the issue of 'Limited Liability Partnerships' (LLPs). This follows from concerns, particularly of the legal and auditing professions, about the consequences of unlimited liability on partners in a firm.

The Report of the CLRG on its 2007 Work Programme has been presented to me and laid before the Houses of the Oireachtas.

In its Report, the CLRG outlined the problems which current partnership law is perceived to cause for certain types of business organisation in Ireland and concludes that the problems are real and substantial. The CLRG explored how the introduction of LLP legislation could address these problems and the types of safeguards which might need to be put in place to protect clients, customers and third parties generally in their dealings with LLPs. The CLRG also considered whether the problems raised by current partnership law could be resolved by other means, without the need to amend the law of partnership.

The CLRG came to the conclusion that a final decision on whether legislation on LLPs should be introduced, and the shape and form LLP legislation should take, can only be reached after a full consultation process involving all of those affected by the issues arising. Such consultation should also include consideration of whether the general statutory limitation on twenty members should be maintained. The consultation process took place during the Autumn 2008-Spring 2009 period as part of the CLRG's 2008-2009 Work Programme and the Group are reconsidering the matter based on the responses received. I await the CLRG's recommendations in relation to this issue.