Question
What are partnerships are recognized under new Ethiopian Commercial code?
Answers
GPT-4o mini
The new Ethiopian Commercial Code, enacted in 2018, recognizes several types of partnerships. These partnerships can vary in terms of structure, liability, and taxation. Here are the primary types of partnerships recognized under the code:
1. **General Partnership (Partnership en Nom Collectif)**: In this type of partnership, all partners share unlimited liability for the debts and obligations of the partnership. Each partner is considered an agent of the partnership, and decisions must typically be made jointly.
2. **Limited Partnership (Partnership en Commandite)**: This partnership consists of at least one general partner with unlimited liability and one or more limited partners whose liability is restricted to their capital contributions. Limited partners do not participate in the day-to-day management of the business.
3. **Limited Liability Partnership (LLP)**: A limited liability partnership offers the benefits of limited liability for all partners, meaning their personal assets are generally protected from the partnership's debts. This structure combines features of partnerships with those of a corporation.
The Ethiopian Commercial Code provides specific regulations governing the formation, management, and dissolution of these partnership types. Additionally, it outlines the rights and obligations of partners, and establishes the legal framework for resolving disputes among them.
For anyone considering forming a partnership in Ethiopia, it is essential to consult the specific provisions of the Commercial Code and possibly seek legal guidance to ensure compliance and proper structuring.
1. **General Partnership (Partnership en Nom Collectif)**: In this type of partnership, all partners share unlimited liability for the debts and obligations of the partnership. Each partner is considered an agent of the partnership, and decisions must typically be made jointly.
2. **Limited Partnership (Partnership en Commandite)**: This partnership consists of at least one general partner with unlimited liability and one or more limited partners whose liability is restricted to their capital contributions. Limited partners do not participate in the day-to-day management of the business.
3. **Limited Liability Partnership (LLP)**: A limited liability partnership offers the benefits of limited liability for all partners, meaning their personal assets are generally protected from the partnership's debts. This structure combines features of partnerships with those of a corporation.
The Ethiopian Commercial Code provides specific regulations governing the formation, management, and dissolution of these partnership types. Additionally, it outlines the rights and obligations of partners, and establishes the legal framework for resolving disputes among them.
For anyone considering forming a partnership in Ethiopia, it is essential to consult the specific provisions of the Commercial Code and possibly seek legal guidance to ensure compliance and proper structuring.