general partner

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Related to general partnership: limited partnership

general partner

n. 1) usually one of the owners and operators of a partnership, which is a joint business entered into for profit, in which responsibility for management, profits, and, most importantly, the liability for debts is shared by the general partners. Anyone entering into a general partnership (the most common business organization involving more than one owner) must remember that each general partner is liable for all the debts of the partnership. Furthermore, any partner alone can bind the partnership on contracts. For example, Joe Doright and Sam Sleazeball are partners in a retail store. Sleazeball runs up a large American Express card bill in the name of the company while on a toot in Las Vegas, contracts for purchase of $30,000 worth of maxi-dresses which are out of fashion, and then takes off with a girlfriend for Tahiti. Doright is responsible for the entire debt. 2) in the 40 states which recognize limited partnerships, the managing partner (or partners) operate the partnership and are liable for its debts beyond the value of the investments by limited partners. The general partners usually receive a management fee and share in profits. Limited partners are prohibited by law from participating in management, can lose more than their investments, and get less than the general partners of unusually high profits. (See: partnership, partner, limited partnership)

general partner

any partner in a partnership other than a limited partner.
References in periodicals archive ?
What should you do -and what should the thousands of other owners of active New Hampshire general partnerships do--to protect yourself from personal liability for misconduct by your partners?
As a matter of law, the Agreement created a general partnership (defined above as the "General Partnership") between Zuckerberg and Ceglia.
To begin, a limited partnership -- unlike a general partnership -- does not simply arise when two or more persons carry on business with a view to profit.
The mechanics of converting from a general partnership to a limited partnership are statutorily prescribed.
However, a GP's creditors can force a sale of the general partnership interest, leading to dissolution and a liquidating distribution of the FLP's property to the creditor, when:
The general partnership bought the project in September 1983 for $550,000 ($14,865 per unit).
The defining feature of a general partnership is that the liability of the partners for the debts and obligations of the partnership is unlimited.
There are several ways to form a partnership, ranging from a general partnership to a corporation (see sidebar, "How to Legally Set Up").
If owners want limited liability, LLCs have a clear advantage over a general partnership or a sole proprietorship.
As described in the May 3, 2010 prospectus for its initial public offering, this was the 15% of the general partnership not already owned by Seed Holding, LLC, its wholly-owned subsidiary.
To this day, Freudenberg-NOK General Partnership has retained the rich heritage of its founding partners to deliver product excellence in seals and vibration control technology.
95-37, addressed conversions of a general partnership into a limited partnership, and a domestic partnership into a domestic LLC (classified as a partnership for Federal tax purposes), respectively.

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