general partner

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Related to General partners: limited partners

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 ?
The partnership agreement also elaborated on the general partners' limits and noted approximately 11 items that the general partners could not perform, unless they first obtained the written approval of majority in interest of the limited partners (i.
Survey responses were obtained by Ernst & Young's real estate private equity funds services group from 48 fund general partners and supplemented by information available and verifiable publicly.
The CPA should not become biased by the fact that the general partners pay the CPA's fees and should avoid being on one side or the other.
When the limited partners purchased the partnership interest, the general partners had agreed to purchase all unsold limited partnership interests and to fund any negative cash flows.
1402(a) (13) to support their argument that Congress only intended to tax a partner's distributive share attributable to a general partner interest.
These LLCs will make the commonly used limited partnerships headed by a corporate general partner obsolete for most real estate purposes.
It may send a negative message to our full-time general partners, employees, clients, referral sources and the general public that the profession does not require the full-time effort, commitment and dedication of a partner.
OVP General Partner Gerry Langeler will participate on a panel during the "Dow Jones Private Equity Analyst Fundraising Summit" being held at the Four Seasons Hotel in San Francisco this week.
Restructuring Corvette City from a general partnership to a limited partnership and exchanging Dick's general partner interest for a limited partner interest could accomplish the goal of limiting Dick's risk of loss to sums he invested in Corvette City.
Recourse debt usually can be added to the general partner's basis and at-risk basis, but LLCs do not have general partners.
Following receipt of the terms of the Offer, Freedom and its General Partners reviewed and considered the Offer.
The concept is simple: The parents transfer real estate, securities and other appreciating assets to a limited partnership in exchange for a general partner interest, a preferential limited partner interest and a nonpreferential limited partner interest.

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