The law provides that the partnership agreement of the common limited partnership (CLP - société en commandite simple) may authorise the redemption or reduction of the partnership interests of one or more partners under the following conditions.
1- Who Can Redeem or Reduce the Partnership Interests of One or More Partners?
the management; or
the partners.
2- To What Extent Is this Redemption or Reduction of the Partnership Interests of One or More Partners Possible?
in whole; or
in part.
3- In What Manner the Redemption or Reduction of the Partnership Interests of One or More Partners Occur?
The redemption or reduction of partner's partnership interests may be carried out at the request of one or more partners.
4- In Addition to the Above Conditions, How Are the Terms of a Redemption or Reduction of the Partnership Interests Determined?
The terms of a redemption or reduction are contractually determined.
References : Article 310-6, § 4 of the law of 10 August 1915 on commercial companies as amended; #362-351* Enforceability of Transfers and Dismemberments (démembrements) of Partnership Interests - CLP/SCS, June 1, 2021, Bertrand Mariaux..
* Podcast #363
*YouTube Video 352*
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