General Partnership Law DIFC Law No. 11 of 2004

PART 1: GENERAL.........................................................................................................................................................1

1. Title........................................................................................................................................................................1

2. Legislative Authority .............................................................................................................................................1

3. Application of the Law ...........................................................................................................................................1

4. Date of enactment .................................................................................................................................................1

5. Commencement .....................................................................................................................................................1

6. Interpretation ........................................................................................................................................................1

7. Administration of the Law.......................................................................................................................................1

PART 2: FORMATION AND REGISTRATION .......................................................................................................................2

8. Definition of and meaning of General Partnership ................................................................................................2

9. Prohibition .............................................................................................................................................................2

10. General Partnership agreement............................................................................................................................2

11. Presumptions for the existence of a General Partnership....................................................................................2

12. Registration..........................................................................................................................................................2

13. Recognised Partnership.......................................................................................................................................3

14. Maintenance of Accounting Records....................................................................................................................3

PART 3: ADMINISTRATION OF AFFAIRS OF A GENERAL PARTNERSHIP .............................................................................5

15. Licence.................................................................................................................................................................5

16. Conduct of Business in the DIFC ..........................................................................................................................5

17. Management of the General Partnership..............................................................................................................5

18. Maintenance of Accounting Records....................................................................................................................5

19. Accounts..............................................................................................................................................................5

20. Records.................................................................................................................................................................6

PART 4: DUTIES OF THE PARTNERS...............................................................................................................................7

21. Accountability of Partners....................................................................................................................................7

22. Duty of Partner not to compete with General Partnership ...................................................................................7

PART 5: GENERAL PARTNERSHIP AUTHORISATION .........................................................................................................8

CHAPTER 1 – AUTHORISATION .....................................................................................................................................8

23. Power of Partner to bind the General Partnership................................................................................................8

24. Legal person ........................................................................................................................................................8

25. Partners bound by acts on behalf of General Partnership ...................................................................................8

26. Partner using resources of General Partnership for private purposes ................................................................8

27. Indemnification.....................................................................................................................................................8

CHAPTER 2 – LIABILITIES ............................................................................................................................................9

28. Liability of Partners..............................................................................................................................................9

29. Liability of the General Partnership......................................................................................................................9

30. Safe keeping of money and property ...................................................................................................................9

31. Misapplication of money or property ...................................................................................................................9

32. Admissions and representations of Partners ......................................................................................................9

33. Notice to Partner...................................................................................................................................................9

34. Liabilities of incoming and outgoing Partners.....................................................................................................9

CHAPTER 3 – CONSENTS ............................................................................................................................................10

35. Variation by consent of terms of General Partnership ...................................................................................... 10

PART 6: PROPERTY..................................................................................................................................................... 11

36. General Partnership Property............................................................................................................................. 11

37. Judgment debt procedure against a Partner......................................................................................................11

38. Rules in relation to interest .............................................................................................................................. 11

PART 7: STRIKE OFF, DISSOLUTION AND CONTINUANCE................................................................................................12

GENERAL PARTNERSHIP LAW iii CHAPTER 1 – STRIKE OFF, RESTORATION AND DISSOLUTION ...................................12

39. Strike off and Restoration .................................................................................................................................12

39A. Dissolution by expiration or notice...................................................................... ...........................................12

40. Dissolution by bankruptcy, death or charge......................................................................................................12

41. Dissolution by illegality of General Partnership................................................................................................ 12

42. Protection of creditors.......................................................................................................................................12

43. Dissolution by the Court.....................................................................................................................................12

CHAPTER 2– CONTINUANCE IN CERTAIN CIRCUMSTANCES ...........................................................................................13

44. Removal of a Partner .........................................................................................................................................13

45. Outgoing Partners.......................................................................................... ....................................................13

46. Where continuance of old terms is presumed ...................................................................................................13

47. Rights of assignee of share in General Partnership................................... .......................................................14

CHAPTER 3 – RIGHTS OF THIRD PARTIES ....................................................................................................................14

48. Rights of persons dealing with General Partnership ........................................................................................ 14

CHAPTER 4 – RIGHTS OF PARTNERS ................................................. .........................................................................14

49. Continuing authority of Partners for purposes of winding up............................................................................14

50. Rights of Partners as to application of General Partnership Property.................. .............................................14

51. Apportionment of premium on premature dissolution....................................................................................... 15

52. Rights where General Partnership is dissolved for fraud or misrepresentations.. ............................................15

CHAPTER 5 – SHARING OF PROFITS ON DISSOLUTION ....................... ..........................................................................15

53. Right of outgoing Partner in certain cases to share profits made after dissolution..........................................15

54. Outgoing or deceased Partner’s share to be a debt ............ ...........................................................................15

55. Distribution of assets on final settlement of accounts............................ ........................................................15

56. Postponement of rights of person in case of insolvency ................................................................................ 16

PART 8: POWERS AND REMEDIES.............................................................................................................................. 17

57. Application of Operating Law ................................................................ ...........................................................17

PART 9: MISCELLANEOUS............................................................................................................................................18

58. Power to make Regulations ............................................................................................................................. 18

59. Waivers and Modification of the Regulations ...................................................................................................18

60. Public Register........................................................................... ......................................................................19

61. Fees...................................................................................................................................................................19

Schedule 1................................................................................................................................................................20

Schedule 2................................................................................................................................................................23