Acts Expressly Authorised for the Limited Partner (SLP/SCSp) - SLP XIII - #333-322*

In a special limited partnership (SLP - société en commandite spéciale), the principle laid down by the law is that the limited partner (LP) may not perform any management act (acte de gestion) vis-à-vis third parties. The LP is also indefinitely, jointly and severally liable, vis-à-vis third parties, for all the commitments of the company in which he has participated in contradiction to the foregoing prohibition, as stated in paragraph 3 of article 320-4 of the law of 10 August 1915 on commercial companies. Finally, the limited partner is also indefinitely, jointly and severally liable to third parties, even for commitments to which he has not been participating, if he has habitually performed acts of management with respect to them, as the law also states.

But then, how can the limited partner act without incurring liability? The actions authorised for the limited partner and therefore not constituting acts of management (actes de gestion) sanctioned by law are the following:

1. the exercise of the prerogatives of a partner;

2. advice and guidance given to:

   1. the SLP;

   2. its affiliated entities; or

   3. their managers;

3. acts of control and supervision;

4. granting of: 

   1. loans;

   2. guarantees; or

   3. security interests; or

5. any other assistance to : 

   1. the company; or

   2. its affiliated entities; and

6. authorisations given to the managers in the cases provided for in the SLP's partnership agreement for acts which exceed their powers.

References: Article 320-4, §2, 4, 5 of the law of 10 August 1915 on commercial companies as amended; De certains actes expressément autorisés pour l’associé commanditaire (SCSp) - #212-201*, 19 juillet 2020, Bertrand Mariaux.

*Podcast #333

333-322* Acts Expressly Authorised for the Limited Partner (SLP/SCSp) - SLP XIII *Article #333-322* *YouTube Video 322* . . . . . . . . #ImpactInvesting , #corporate , #avocat , #ServeAndThrive , #ThriveAndAccomplishYourMission , #MariauxAvocats , #MissionDriven , #MissionDrivenVenture , #alternativeinvestment , #limitedpartnership , #LP , #SpecialLimitedPartnership , #SLP , #SCSp , #sociétéencommanditespéciale, #DFI To see this publication, go to our blog The VADE-MECUM - https://mariauxavocats.com/vademecum.

*YouTube Video 322* 

333-322* Acts Expressly Authorised for the Limited Partner (SLP/SCSp) - SLP XIII*Article #333-322**Podcast #333*YouTube Video 322*To see this publication, g...

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)
Editor: Niki Shillinglaw