The States of Guernsey, the Island parliament, has approved proposed amendments which will widen the scope of the Limited Partnerships (Guernsey) Law 1995 that came into force on l February 1996.
The original purpose of the legislation was to provide the Guernsey fund management industry with a useful investment vehicle of a kind familiar to North American investors, particularly venture capital and management buy out specialists. A feature of this existing legislation is that while it gives a limited partnership 'continuous and successive existence in the persons of its partners' it does not bestow a legal personality on the partnership itself. This will not be changed.
However, having consulted expert opinion within the finance sector, the Commission recommended to the parliament that in order to attract an additional kind of business - that of investing in Lloyds as 'Names' - the legislation should be amended to allow partners the option, at the time of registration, of bestowing a legal personality on their particular partnership.
This fulfils a Lloyds' requirement and creates a new international business opportunity for Guernsey.
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