General Partnership Company
- Pages: 3
- Word count: 516
- Category: Corporation
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1- General Partnership is a company formed by two or more partners. 2- General Partnership must be holders of the UAE nationality. 3- General Partnership should be concentrated on working together in order to realize profit, they must accept to bear loss if any. Failure means that the concept of partnership will be prejudiced and the company will be void. 4- The name of a general partnership should consist of the name of all the partners, it may be by one name with an addition indicating the existence of the company such as (…. & brothers) or (…. & sons). 5- The memorandum of a general partnership should not provide for an agreement on depriving a partner from profit or exempting him from suffering loss.
6- Partners should agree on the percentage of profit and loss in the company memorandum. 7- Each partner in a general partnership will be deemed merchant. 8- The shares of partners in a general partnership may not be represented by negotiable instruments and may not be assigned to others unless upon approval by all partners. 9- The management of a general partnership may be the responsibility of one or more of the partners or a person who is not a partner. The management of a general partnership may be the responsibility of one or more of the partners or a person who is not a partner. 10- The law also provided that joining the company or withdrawal of partners; avoidance of the memorandum; dissolution or liquidation of the company should all be effected at the Commercial register/Abu Dhabi Municipality and at the company Section/Ministry of Economy & Commerce. 11- The law did not fix a certain capital amount for a general partnership.
General Partnership Company
* It is stipulated by the law and the memorandum of general partnership should include: 1- The name; surname and title (if any) of each partner, also his nationality and date of birth. 2- The company name; purpose of incorporation; headquarters and branches if any; capital and the share undertaken to be presented by each partner whether it is in cash or in kind or merely a right; the estimated value of share; pertinent terms of presentation and date of maturity; date of incorporation and termination and the terms of management, with a special reference to the names of authorized person who may sign on behalf of the company and the extent of their powers.
3- It should, also include the commencement and end of the company fiscal year and the percentages of profit/ loss distribution among partner ins. 4- In addition to all these major information required by the law, the memorandum of a general partnership should also include other information agreed upon by all partners such as the formation of the board of directors; terms of share assignment; partners liabilities; terms of competition if allowed or not. Decision terms of issuance; reasons of company dissolution; terms of liquidation; dispute-settlement agency and any other statements agreed upon by the partners, provided that they should not be in contravention to the laws.