- Joined
- Nov 26, 2021
- Messages
- 36
- Thread Author
- #1
A
BILL
To
Define partnerships and types of partnerships in the context of Redmont.
The people of the Commonwealth of Redmont, through their elected Representatives in the
Congress and the force of law ordained to that Congress by the people through the constitution,
do hereby enact the following provisions into law:
1 - Short Title and Enactment
(1) This Act may be cited as the ‘Partnership Act'
(2) This Act shall be enacted immediately upon its signage.
(3) This Act has been authored by: Rep. AsunaYukkiSAO
(4) This Act has been co-sponsored by: Rep. RandomIntruder
2 - Reasons
(1) Currently there is often no formal definition of business partners and partnerships in
businesses.
(2) This bill strives to have formal legal definitions for businesses to protect the interest of all
members of a partnership and to make the legal processes of dissolving, separating, and
merging easier.
3 - Partnership Definition
(1) A partnership is an association of two or more legal entities to run a business for profit as
co-owners
(2) The following elements indicate that a partnership has been formed and every member of a
partnership must have:
(a) the right to receive a portion of the company's profits
(b) a declaration of intent to become business partners
(c) the right or participation in the business's management
(d) a willingness to share or the sharing of company losses and liabilities through the duration of
the partnership.
(3) A legal entity is not considered a partner if it does not contain all of the above traits.
(4) Profit, liability, and loss sharing does not have to be divided evenly across all partners in a
partnership.
4 - Limited Liability Partnership
(1) A Limited Liability Partnership is a subgenre of partnerships defined as two or more legal
entities, usually but not necessarily in the same profession, joining together to create a
partnership where each is responsible for their own section of the company but act under one
name (i.e. law firms).
(2) Should two or more parties create a partnership and set it as one of limited liability, the
partners are no longer liable for the actions of other partners in the situation that one or more,
but not all, of the partners are criminally or civilly convicted in a charge targeted to the entire
partnership (i.e. convicting a law firm for breach of confidentiality on behalf of one lawyer’s
actions.)
(3) To be entirely non-liable for damages incurred by another partner, the partnership must be
declared to be of Limited Liability before the action leading to the cause of the damages.
BILL
To
Define partnerships and types of partnerships in the context of Redmont.
The people of the Commonwealth of Redmont, through their elected Representatives in the
Congress and the force of law ordained to that Congress by the people through the constitution,
do hereby enact the following provisions into law:
1 - Short Title and Enactment
(1) This Act may be cited as the ‘Partnership Act'
(2) This Act shall be enacted immediately upon its signage.
(3) This Act has been authored by: Rep. AsunaYukkiSAO
(4) This Act has been co-sponsored by: Rep. RandomIntruder
2 - Reasons
(1) Currently there is often no formal definition of business partners and partnerships in
businesses.
(2) This bill strives to have formal legal definitions for businesses to protect the interest of all
members of a partnership and to make the legal processes of dissolving, separating, and
merging easier.
3 - Partnership Definition
(1) A partnership is an association of two or more legal entities to run a business for profit as
co-owners
(2) The following elements indicate that a partnership has been formed and every member of a
partnership must have:
(a) the right to receive a portion of the company's profits
(b) a declaration of intent to become business partners
(c) the right or participation in the business's management
(d) a willingness to share or the sharing of company losses and liabilities through the duration of
the partnership.
(3) A legal entity is not considered a partner if it does not contain all of the above traits.
(4) Profit, liability, and loss sharing does not have to be divided evenly across all partners in a
partnership.
4 - Limited Liability Partnership
(1) A Limited Liability Partnership is a subgenre of partnerships defined as two or more legal
entities, usually but not necessarily in the same profession, joining together to create a
partnership where each is responsible for their own section of the company but act under one
name (i.e. law firms).
(2) Should two or more parties create a partnership and set it as one of limited liability, the
partners are no longer liable for the actions of other partners in the situation that one or more,
but not all, of the partners are criminally or civilly convicted in a charge targeted to the entire
partnership (i.e. convicting a law firm for breach of confidentiality on behalf of one lawyer’s
actions.)
(3) To be entirely non-liable for damages incurred by another partner, the partnership must be
declared to be of Limited Liability before the action leading to the cause of the damages.