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Silent Partnership Agreement Australia » Sophie T

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Oct
08

Silent Partnership Agreement Australia
by admin | No Comments

When these situations occur, the common instinct for silent associates who have invested large amounts of capital in a company is to overreact and try to get involved in the operational aspects of the business to correct the situation. This can lead to difficult situations where the silent partner exceeds the limits of their role in the partnership and creates a dysfunctional scenario in the operation of the business. Limited partnerships are subject to Part III of the Act. The main feature of such a partnership is that the responsibility of a commander is limited: see definition in Article 49(1). Even if you do not work in business, as a silent partner, you are responsible for commercial obligations, as well as complementary ones. If your partnership is sued or bankrupt, your personal property may be confiscated to pay for lawsuits and creditors. You may also lose your financial investment in the business…



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