Let us consider the question of transfer, dismemberment (démembrement), and pledge of partnership interests in a special limited partnership (SLP - société en commandite spéciale).
This question is governed by almost identical rules for limited and general partners (GPs) (i). The only exception is that the rules of general law (droit commun) are more restrictive for GPs' partnership interests (ii). We may also notice that there is still a great deal of room for contractual freedom.
I - Partnership Interests: Transfer, Pledge and Dismemberment (démembrement) - Similar Rules for GPs and Limited Partners (LPs)’ Partnership Interests
Whether they are partnership interests of LPs or GPs, they may only be transferred, dismembered or pledged in accordance with the terms & conditions and in the form provided for in the partnership agreement, failing which the operation shall be null and void.
If the partnership agreement is silent on the above, and except in the case of a transfer other than by reason of death, the dismemberment (démembrement) and pledging of an LP's partnership interests require the approval of the GP(s).
In the same case (as in the previous paragraph), but this time for the GP's partnership interest(s), additional steps are required.
II - GP’s Partnership Interest(s): Transfer, Pledge and Dismemberment (démembrement) - Restrictions
As mentioned above, in the absence of provisions to the contrary in the SLP's partnership agreement, and for a transfer other than a transfer by reason of death, a dismemberment (démembrement) and pledging of GPs' partnership interests requires this time:
the approval of all the partners; and
that the latter decide in the same manner as when amending the partnership agreement.
References: Article 320-7 §1 & 2 of the Law of 10 August 1915 on commercial companies as amended ; #336-325* Partners' Decisions and Partnership Agreement (SLP), April 19, 2021, Bertrand Mariaux; #337-326* What About Partners' Decisions in the Absence of Statutory Provisions in an SLP? April 20, 2021, Bertrand Mariaux.
*Podcast #338
*YouTube Video 327*
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