In our first presentation on common limited partnerships (CLPs - sociétés en commandite simple), we mentioned that only general partners (GPs - associés commandités) are jointly and severally liable for the commitments of the CLP.

In a CLP, the limited partner (LP - associé commanditaire) is prohibited from carrying out management acts (actes de gestion) vis-à-vis third parties.

However, if the LP were to engage in acts of management (actes de gestion) of the CLP vis-à-vis third parties, she/he would be held indefinitely and jointly and severally liable vis-à-vis third parties for all the partnership's commitments relating to the said acts of management. The LP would then be in breach of the law.

The LP would also be held indefinitely and jointly and severally liable vis-à-vis third parties if she/he has habitually acted in a management capacity (actes de gestion) in respect of partnership commitment(s) in which he did not take part.

A certain number of acts will not fall within the scope of management acts (actes de gestion) for which the LP incurs indefinite and joint liability vis-à-vis third parties. We will be discussing these next.

References: Article 310-3, paragraphs 3 and 4 of the law of 10 August 1915 on commercial companies as amended; #344-333* What Is a Common Limited Partnership? - CLP / SCS I, April 29, 2021 Bertrand Mariaux.

*Podcast #354

*YouTube Video 343*

Bertrand Mariaux, Avocat à la Cour, LL.M. (hons.)

Prestation de serment (Swearing-in oath): Luxembourg (2011), Certificat d’Aptitude à la Profession d’Avocat, École de Formation professionnelle des Barreaux de la Cour d’appel de Paris (2009), Bond University (LL.M. (distinct.), International Legal Practice, 2010), Université Sorbonne Paris Nord & University of Limerick (Master in European & International Law - major in economics, 2008), certified Expert in Microfinance (Frankfurt School of Finance & Management, 2015), social entrepreneurship (University of Oxford, 2015 & The Wharton School of Social Policy & Practice, 2014) and social & solidarity economy (International Labour Organization Academy - Social & Solidarity Economy, Organisation Internationale du Travail - Économie Sociale et Solidaire, 2017)

Contributor: Cédric Buisine, Avocat