A Comparative Analysis Between the Three Different Types of Commercial Partnerships

3020 Words Apr 24th, 2013 13 Pages
Assignment Number: 1
11/26/2012

DIPLOMA IN FINANCIAL SERVICES OPERATIONS AND COMPLIANCE
Ms Maria Vella

A comparative analysis between the three different types of commercial partnerships

2012

INDEXT

1.

A comparative analysis between the three different types of commercial partnerships: a. the limitation of liability of the partners/members
b. the different rights of partners/members.

2.

The notion of separate legal personality

3.

Analysis the different classes of shares of public/private companies and rights attached to them.

2

Ms. Maria Vella

A comparative analysis between the three different types of commercial partnerships

2012

A partnership is a for-profit business association of two
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There has to be at least one general partner and one limited partner. A person, including a limited partner, who holds himself out as being a general partner, shall be held liable unlimitedly and jointly and severally with the general partners for all the obligations contracted by the partnership. A limited partner cannot take part in the management of a partnership en commandite. The liability of the general partners is of a subsidiary nature in the sense that no action may be taken against them unless the property of the partnership is first discussed. The provisions governing partnerships 'en nom collectif ' apply to this kind of partnership unless inconsistent with the provisions relating to partnerships 'en commandite '.
In terms of the Maltese Income Tax Act, a partnership en commandite with its capital divided into shares will be treated as a company for Maltese income tax purposes. A partnership en nom collectif is transparent for tax purposes and the partners declare their share of profit in their personal tax returns. Tax is therefore chargeable according to the applicable personal tax rates.
The commercial partnerships are deemed to be a 'company ' and are eligible for all, or any treatment, fiscal incentives and benefits available to companies.
All companies in Malta are regulated by the Companies Act, 1995 which is based on UK legislation. A company has a legal
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