2 April 2011

Kenya: New Bill to Replace Limited Partnership Act in Place

A BILL seeking to repeal and replace the limited partnership Act has been introduced in parliament. The limited liability partnership bill, 2010 aims to "encourage the development of Kenya's professional business and to provide and avenue for businesses to grow in a stable environment".

Under the Act, a limited liability partnership agreement means an agreement between the partners of partnership or between the partnership and its partners that determines the mutual rights and duties of the partners and their rights and duties in relation to the partnership. A partner means a person who has been admitted as a partner in the partnership in accordance with the relevant limited liability agreement.

The Act states that two or more persons intending to carry out a lawful business for purposes of making a profit may register a limited liability partners. "A limited liability partnership is required to have at least two partners," the bill reads in part. But they must provide among others the name of the partnership, the nature of business as well as the registered offices.

The bill contains provisions for the appointment of the registrar of limited liability partnerships. The registrar of companies is the registrar of limited liability partnership.

The bill grants the registrar the powers to refuse registration of a limited partnership if he is not satisfied with the information provided.

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