Limited Partnerships Cap 30 - as Plain Text by MWakili

LAWS OF KENYA The LimiTed ParTnershiPs acT Chapter 30 Revised Edition 2010 (1981) Published by the National Council for Law Reporting with the Authority of the Attorney General www.kenyalaw.org CAP2.

30 Limited Partnerships [Rev.

2010 CHAPTER 30 THE LIMITED PARTNERSHIPS ACT ARRANGEMENT OF SECTIONS Section 1Short title.

2Interpretation.

3Denition and constitution.

4Registration required.

5Modications of general law.

6Law as to private partnership to apply subject to this Act.

7Manner and particulars of registration.

8Registration of changes in partnerships.

9Notice of general partner becoming a limited partner or of assignment of share of limited partner to be advertised.

10Ad valorem stamp duty on contributions by limited partners.

11Making false returns to be an offence.

12Registrar to le statement and issue certicate of registration.

13Register and index to be kept.

14Inspection of statements registered.

15Rules.

Rev.

2010] Limited Partnerships CAP.

30 3 CHAPTER 30 THE LIMITED PARTNERSHIPS ACT Cap.

285 (1948), L.N.

300/1956, st L.N.

173/1960.

Commencement: 1 July, 1934 An Act of Parliament to establish limited partnerships 1.

This Act may be cited as the Limited Partnerships Act.

Short title.

2.

In this Act, except where inconsistent with the context Interpretation.

court means the High Court; rm, rm-name and business have the same meanings as in the Partnership Act; Cap.

29.

general partner means any partner who is not a limited partner as dened by this Act; registrar of companies means the ofcer appointed for the registration of companies under the Companies Act.

Cap.

486.

3.

(1) Limited partnerships may be formed in the manner and Denition and subject to the conditions provided by this Act.

constitution.

(2) A limited partnership shall not consist in any case of more than twenty persons, and must consist of one or more persons called general partners, who shall be liable for all debts and obligations of the rm, and one or more persons to be called limited partners, who shall at the time of entering into the partnership contribute thereto a sum or sums as capital or property valued at a stated amount, and who shall not be liable for the debts or obligations of the rm beyond the amount so contributed.

(3) A limited partner shall not, during the continuance of the partnership, either directly or indirectly draw out or receive back any part of his contribution, and if he does so draw out or receive back any such part, shall be liable for the debts and obligations of the rm up to the amount so drawn out or received back.

(4) A body corporate may be a limited partner.

4.

Every limited partnership must be registered as such in.

accordance with the provisions of this Act and of any rules thereunder, Registration required CAP4.

30 Limited Partnerships [Rev.

2010 or in default thereof it shall be deemed to be a general partnership, and every limited partner shall be deemed to be a general partner.

Modications of 5.

(1) A limited partner shall not take part in the management of general law.

the partnership business, and shall not have power to bind the rm, but he may by himself or his agent at any time inspect the books of the rm and examine into the state and prospects of the partnership business, and may advise with the partners thereon; and if a limited partner takes part in the management of the partnership business he shall be liable for all debts and obligations of the rm incurred while he so takes part in the management as though he were a general partner.

(2) A limited partnership shall not unless specically provided in the partnership agreement be dissolved by the death or bankruptcy of a limited partner, and the lunacy of a limited partner shall not be a ground for dissolution of the partnership by the court unless the lunatics share cannot be otherwise ascertained and realized.

(3) In the event of the dissolution of a limited partnership, its affairs shall be wound up by the general partners unless the court otherwise orders.

(4) Subject to any agreement expressed or implied between the partners (a) any difference arising as to ordinary matters connected with the partnership business may be decided by a majority of the general partners; (b) a limited partner may, with the consent of the general partners, assign his share in the partnership, and upon such an assignment the assignee shall become a limited partner with all the rights of the assignor; (c) the other partners shall not be entitled to dissolve the partnership by reason of any limited partner suffering his share to be charged for his separate debt; (d) a person may be introduced as a partner without the consent of the existing limited partners; (e) a limited partner shall not be entitled to dissolve the partnership by notice.

Law as to private 6.

Subject to the provisions of this Act, the Partnership Act, and partnership to apply rules of equity and of common law applicable to partnerships, except subject to this Act.

Cap.

29.

so far as they are inconsistent with the express provisions of the last- mentioned Act, shall apply to limited partnerships.

Rev.

2010] Limited Partnerships CAP.

30 57.

The registration of a limited partnership shall be effected Manner and by sending by registered post or delivering to the registrar of particulars of companies a statement signed by the partners containing the following registration.

particulars (a) the rm name; (b) the general nature of the business; (c) the principal place of business; (d) the full name of each of the partners; (e) the term, if any, for which the partnership is entered into, and the date of its commencement; (f) a statement that the partnership is limited, and the description of every limited partner as such; (g) the sum contributed by each limited partner, and whether paid in cash or how otherwise.

8.

(1) If during the continuance of a limited partnership any change Registration is made or occurs in of changes in partnerships.

(a) the rm name; (b) the general nature of the business; (c) the principal place of business; (d) the partners or the name of any partner; (e) the term or character of the partnership; (f) the sum contributed by any limited partner; or (g) the liability of any partner by reason of his becoming a limited instead of a general partner or a general instead of a limited partner, a statement, signed by the rm, specifying the nature of the change shall within seven days be sent by post or delivered to the registrar of companies.

CAP6.

30 Limited Partnerships [Rev.

2010 (2) If default is made in compliance with the requirements of this section, each of the general partners shall be guilty of an offence and liable to a ne not exceeding twenty shillings for each day during which the default continues.

Notice of general 9.

Notice of any arrangement or transaction under which any partner becoming a limited partner or of person will cease to be a general partner in any rm, and will become a assignment of share limited partner in that rm, or under which the share of a limited partner of limited partner to in a rm will be assigned to any person, shall be forthwith advertised be advertised.

in the Gazette, and until notice of the arrangement or transaction is so advertised the arrangement or transaction shall, for the purposes of this Act, be deemed to be of no effect.

Ad valorem stamp 10.

The statement of the amount contributed by a limited partner, duty on contributions and a statement of any increase in that amount, sent to the registrar of by limited partners.

companies for registration under this Act, shall be charged with an ad valorem stamp duty of ve shillings for every two thousand shillings, and for any fraction of two thousand shillings over any multiple of two thousand shillings, of the amount so contributed, or of the increase of that amount, as the case may be; and, in default of payment of stamp duty thereon as herein required, the duty with interest thereon at the rate of eight per centum per annum from the date of delivery of the statement shall be a joint and several debt to the Government, recoverable from the partners, or any of them, named in the statements, or, in the case of an increase, from all or any of those partners whose discontinuance in the rm has not, before the date of delivery of the statement of increase, been duly notied to the registrar of companies.

Making false returns 11.

Any person who makes, signs, sends or delivers for the purpose to be an offence.

of registration under this Act any false statement known by him to be false, is guilty of an offence and liable to imprisonment for a term not exceeding two years.

12.

On receiving any statement made in pursuance of this Act, Registrar to le statement and the registrar of companies shall cause it to be led, and he shall send by registered post to the rm from whom the statement has been received issue certicate of registration.

a certicate of the registration thereof.

Register and index to 13.

The registrar of companies shall keep at his ofce, in proper be kept.

books to be provided for the purpose, a register and an index of all the limited partnerships registered under this Act, and of all the statements registered in relation to those partnerships.

Inspection of 14.

(1) Any person may inspect the statements led by the registrar statements registered.

of companies, and there shall be paid for each inspection such fees as L.N.

300/1956, L.N.

173/1960.

may be prescribed by the Minister, not exceeding ve shillings for each inspection; and any person may require a certicate of the registration Rev.

2010] Limited Partnerships CAP.

30 7 of a limited partnership, or a copy of or extract from any registered statement, to be certied by the registrar of companies, and there shall be paid for a certicate of registration, certied copy, or extract such fees as the Minister may prescribe, not exceeding ve shillings for the certicate of registration, and not exceeding fty cents for each folio of one hundred words.

(2) A certicate of registration, or a copy of or extract from any statement registered under this Act, if duly certied to be a true copy under the hand of the registrar of companies (whom it shall not be necessary to prove to be the registrar of companies), shall, in all legal proceedings, civil or criminal, and in all cases whatsoever, be received in evidence.

15.

The Minister may make rules concerning any of the following Rules.

matters L.N.

300/1956, L.N.

173/1960.

(a) the fees to be paid to the registrar of companies under this Act, so that they do not exceed in the case of the original registration of a limited partnership the sum of forty shillings, and in any other case the sum of ve shillings; (b) the duties or additional duties to be performed by the registrar of companies for the purposes of this Act; (c) the performance by deputy registrars of companies and other ofcers of acts by this Act required to be done by the registrar of companies; (d) the forms to be used for the purposes of this Act; (e) generally the conduct and regulation of registration under this Act and any matters incidental thereto.

CAP8.

30 Limited Partnerships [Rev.

2010 [Subsidiary] SUBSIDIARY LEGISLATION Rules under section 15 Cap.

285 (1948), THE LIMITED PARTNERSHIPS RULES Sub.

Leg.

1.

These Rules may be cited as the Limited Partnerships Rules.

2.

The fees to be paid to the registrar of companies under the Act shall be as follows (a) on the original registration of a limited partnership the sum of forty shillings; (b) on the registration of a statement of any change within the meaning of section 8 (1) of the Act occurring during the continuance of a limited partnership the sum of ve shillings; (c) by any person inspecting the statements led by the registrar of companies in the register ofce the sum of one shilling for each inspection; (d) by any person requiring a certicate of the registration of any limited partnership or a certied copy of or extract from any registered statement the sum of two shillings for each certicate and for such certied copy or extract the sum of fty cents for each folio of one hundred words.

3.

The forms in the Schedule hereto with such variation as the circumstances of each case may require shall be the forms to be used for the purposes of the Act.

SCHEDULE (r.

3) No.

of Certicate.

Form No.

L.P.1.

THE LIMITED PARTNERSHIPS ACT appliCation for registration of a limited partnership We, the undersigned, being the partners of the rm of.

.

hereby apply for registration as a limited partnership, and for that purpose supply the following particulars, pursuant to section 7 of the Limited Partnerships Act: The rm name: The general nature of the business: The principal place of business: Rev.

2010] Limited Partnerships CAP.

30 9 [Subsidiary] The term, if any, for which the partnership is entered into, and the date of its commencement: Term if any:.

years.

If no denite term, the conditions of existence of the partnership: Date of commencement: The partnership is limited.

Presented or forwarded for ling by: Full name and address of each of the partners: General partners: Limited partners: Amount contributed by each limited partner, and whether paid in cash, or how otherwise:* Signatures of all the partners: Date.

* A separate statement (Form L.P.3) of the amounts contributed must accompany this application, for the purpose of payment of stamp duty, pursuant to section 10 of the Act.

_ No.

of Certicate.

Form No.

L.P.2.

THE LIMITED PARTNERSHIPS ACT notiCe of Change in the limited partnership.

Notice is hereby given, pursuant to section 8 of the Limited Partnerships Act, that the changes specied below have occurred in this limited partnership: (See footnote.) (a) Change in the rm name: Previous name: New name: (b) Change in the general nature of the business: General nature of business as previously carried on: General nature of business as now carried on: Here insert name of rm or partnership.

CAP10.

30 Limited Partnerships [Rev.

2010 [Subsidiary] (c) Change in the principal place of business: Previous place of business: New place of business: Presented or forwarded for ling by: (d) Change in the partners, or the name of any partner: Note.Changes brought about by death, by transfer of interests, by increase in the number of partners, or by change of name of any partner, must be here notied.

(e) Change in the term or character of the partnership: Previous term, if any, but, if no denite term, then the conditions under which the partnership was constituted.

New term, if any, but, if no denite term, then the conditions under which the partnership is now constituted.

(f) Change in the sum contributed by any limited partner.

Note.Any variation in the sum contributed by any limited partner must be here stated.

A statement (Form L.P.4) of any increase in the amount of the partnership capital, whether arising from an increase of contributions, or from introduction of fresh partners, must be made on a separate form, for the purpose of payment of stamp duty, pursuant to section 10 of the Act.

(g) Change in the liability of any partner by reason of his becoming a limited instead of a general partner, or a general instead of a limited partner.

Signature of rm.

Date Note.Each change must be entered in the proper division (a), (b), (c), (d), (e), (f), or (g), as the case may be.

Provision is made in this form for notifying all the changes required by the Act to be notied, but it will frequently happen that only one item of change, such as change in the principal place of business, for instance, has to be notied.

In any such case, the word nil should be inserted in the other divisions.

The statement must be signed at the end by the rm, and delivered for registration within seven days of the change or changes taking place.

_ Rev.

2010] Limited Partnerships CAP.

30 11 [Subsidiary] No.

of Certicate.

Form L.P.

No.

3.

THE LIMITED PARTNERSHIPS ACT *.

statement of the Capital Contributed by limited partners made pursuant to seCtion 10 of the limited partnerships aCt The amounts contributed in cash or otherwise by the limited partners of the rm*.

.

are as follows: Names and addresses of limited partners Amount contributed in cash, or otherwise (if otherwise than in cash, that fact, with particulars, must be stated) Signature of a general partner.

Date.

Note.The stamp duty on the nominal capital is ve shillings for every two thousand shillings, or fraction of two thousand shillings, contributed by each limited partner.

This statement must accompany the application form L.P.1 for registration of a limited partnership.

Presented or forwarded for registration by.

* Here insert name of rm or limited partnership.

_ No.

of Certicate.

Form No.

L.P.

4.

THE LIMITED PARTNERSHIPS ACT.

statement of inCrease of Capital Contributed in Cash, or otherwise, by limited partners, pursuant to seCtion 10 of the limited partnerships aCt The capital of the limited partnership.

has been increased by the addition thereto of sums contributed, in cash or otherwise, by the limited partners, as follows: Increase or additional sum now Total amount contributed (if Names of limited partners contributed (if otherwise than in otherwise than in cash, that cash, that fact, with particulars, fact, with particulars, must be must be stated) stated) Here insert name of rm or limited partnership.

CAP12.

30 Limited Partnerships [Rev.

2010 [Subsidiary] Signature of a general partner.

Date.

Notes.In the case of a new limited partner, the rst and third columns only will be used.

The stamp duty on an increase of capital is ve shillings for every two thousand shillings, or fraction of two thousand shillings, contributed by each limited partner.

This statement is to be led within seven days of the increase taking place.

Presented or forwarded for registration by.

_ No.

CertifiCate of registration of a limited partnership I hereby certify that the rm ., having lodged a statement of particulars pursuant to section 7 of the Limited Partnerships Act, is this day registered as a limited partnership.

Given under my hand at Nairobi this.

day of ., 19.

Fee paid, Sh.

Stamp duty on capital Sh.

.

Registrar of Companies.

_ pursuant to seCtion 9 of the limited partnerships aCt _ Notice is hereby given that under an arrangement entered into on the.

day of ., 19 .,.

ceases to be a general partner and becomes a limited partner in the rm of.

carrying on business as.

at.

Dated this.

day of ., 19 Signature: Witness to the signature of.

Name: Address: Rev.

2010] Limited Partnerships CAP.

30 13 [Subsidiary] _ pursuant to seCtion 9 of the limited partnerships aCt _ Notice is hereby given that under an arrangement entered into on the.

day of ., 19 .,.

of the rm of.

carrying on business as.

at.

has assigned his share as a limited partner in the above-named rm to.

Dated this.

day of ., 19 Signature: Witness to the signature of.

Name: Address:.