Introduced in February and designed to be both simple and flexible, Guernsey's new Limited Partnership Law is already assuming wider uses than were first envisaged: the creation of pooled investment vehicles for North Americans especially in venture capital and management buy-out situations and as an option for some captive insurers.
"We were intrigued to find that instead of a fund the first to take advantage of our new legislation was a leading European legal practice. It is an unforeseen development which we warmly welcome," says Peter Crook, Director General FSC.
The core principle of Guernsey's legislation is that a "general partner" is liable for all the debts and obligations of a firm. However, a "limited partner" at the time of entry contributes, or agrees to contribute, a stated amount of capital and is not liable for the obligations of the partnership beyond that amount.
NEW E-MAIL AND INTERNET ADDRESS
Please note: The Financial Services Commission has a new E-mail address which is firstname.lastname@example.org and its information site on the Internet can now be located on http://gfsc.guernsey.net
However, http://www.itl.net/go/to/GuernseyFSC will remain active for the foreseeable future.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact Peter Crook on Tel: +44 (0) 1481 712 706 or fax: +44 (0) 1481 712 010.
Visit the Guernsey Financial Services Commission Web Site at Click Contact Link