We are pleased to announce the enactment of the new Limited Partnership Act (British Virgin Islands) (“LPA”). The LPA represents the culmination of the efforts of fourteen (14) lawyers from eight (8) British Virgin Islands law firms to create a state of the art limited partnership act. Stand out features of the LPA include the following:
• ease and cost-effectiveness of formation
• extensive flexibility and freedom of contract regarding the terms of the partnership agreement
• ability for a limited partnership to have legal personality
• a high degree of flexibility for dealing with limited partners who default on capital commitments
• provisions facilitating capital call financing
• protections for managers/GPs who manage a wide range of funds
• ability to publicly register security against a limited partnership with legal personality and to obtain priority under BVI
law to the assets of the limited partnership as a result of the filing
• extensive safe harbour provisions for limited partners
• application of certain corporate law concept to limited partnerships, such as continuations, mergers, consolidations,
redemptions of minority, interests and arrangements
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