Corprate law general partnership Essay Example | Topics and Well Written Essays - 1000 words

Corprate law general partnership - Essay Example In the United Kingdom, the laws governing the creation of partnerships differ from those in Saudi Arabia. Being under the Commonwealth, the United Kingdom embraces provisions created by the body. The creation of a partnership is perceived and any other entrepreneur venture. However, certification of partnership in the United Kingdom is only awarded to business entities with more than one person as partners. The number of partners in such business entities is limited to twenty. After its creation, partners are required to provide full names for registration. After registration all person stated as partners are provided with the mandate of conducting business of behalf of the business entity (DeMott, 2001). Upon creation, partners are required to create profit and loss sharing ratios. In most cases, partners are required to determine this ration by considering the capital contribution for each partner. This minimizes cases of misunderstanding in future situations. Additionally, partnerships are required to name the entity in regards to the names of all partners. However, this name procedu re could be ignored as embrace a naming system that has been agreed after deliberation by all partners (DeMott, 2001). The author further points out that if names as used in naming the entity, it would be illegal to exclude the name of one partner (DeMott, 2001). Running of general partnerships is done by all members. However, the law provides that partners may agree to hire a person in the position to conduct business on their behalf. However, this process should be clear and the decision provided to the government for clarification. In situations where the partners control the business, each partner has the right to access business information as well conduct business on behalf of the company. In cases of debt, all partners would share the risk (Arthur, 2003). However, personal properties of the partners cannot be liable for confiscation when the company