The Liability of the Managers of an SLP (Excl. GP) - SLP VIII - #328-317

It is interesting to remember that general partners (GPs - associés commandités) have unlimited, joint and several liability for all obligations incurred by the special limited partnership (SLP - société en commandite spéciale). What about the liability of managers who are not GPs? In this case, general law (droit commun) provisions apply. This implies that these managers are liable to the SLP for the execution of the mandate they have received and for any faults committed in the course of their management.

Joint & Several Liability Towards Third Parties and Towards the Company for Breaches of the Law as well as the Partnership Agreement

The aforementioned managers are jointly and severally liable either:

1. towards the company;

2. towards any third party;

for any damage resulting from infringements of: 

1. the law of 10 August 1915 on commercial companies as amended; or 

2. the limited partnership agreement.

Release From Liability 

The said managers are discharged from liability for offences in which they did not take part under two cumulative conditions: 

1. if no fault is attributable to them; and

2. if they have reported such offences to the management board and the nearest general meeting of shareholders following the commission of the offence(s).

References: Articles 320-3 §2, 320-1 (1) and 441-9 of the law of 10 August 1915 on commercial companies as amended; #207-196* La responsabilité des gérants d’une SCSp (hors associé commandité), 13 juillet 2020, Bertrand Mariaux; the common limited partnership (société en commandite simple - SCS) is subject to the same rules as those mentioned in this article - in this respect, see publication : La responsabilité des gérants de la SCS (hors associés commandités) #185-174*, 22 juin 2020, Bertrand Mariaux.

*Podcast #328

The Liability of the Managers of an SLP (Excl. GP)-SLP-VIII *Article #328-317* *YouTube Video 317* . . . . . . . . #ImpactInvesting , #corporate , #avocat , #ServeAndThrive , #ThriveAndAccomplishYourMission , #MariauxAvocats , #MissionDriven , #MissionDrivenVenture , #alternativeinvestment , #limitedpartnership , #LP , #SpecialLimitedPartnership , #SLP , #SCSp , #sociétéencommanditespéciale, #DFI https://mariauxavocats.com/vademecum/mcjzl8thhl7wd9wd6bynysxzarmanx https://www.linkedin.com/pulse/liability-managers-slp-excl-gp-slp-viii-bertrand-mariaux To see this publication, go to our blog The VADE-MECUM - https://mariauxavocats.com/vademecum.

*YouTube Video 317* 

328-317-The Liability of the Managers of an SLP (Excl. GP)-SLP-VIII*Article #328-317*: https://mariauxavocats.com/vademecum/mcjzl8thhl7wd9wd6bynysxzarmanx *...

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

Editor: Nikolai Shillinglaw

Management of an SLP/SCSp - Introduction - SLP VII - #327-316*

As in the case of a Luxembourg common limited partnership (CLP, société en commandite simple), the management of a Luxembourg special limited partnership (SLP, société en commandite spéciale) belongs to one or more managers, whether general partners (associés commandités) or not. As in the case of a CLP, the managers of the SLP are appointed in accordance with the provisions of the partnership agreement. 

Managers who are not general partners are liable to the SLP, in accordance with general law provisions (droit commun), for the mandate they have received and for any faults committed under their management. 

References: Article 320-3, § 1, 2 and 441-9, § 1 of the law of 10 August 1915 on commercial companies as amended; #206-195* La gérance d’une SCSp - Introduction, 13 juillet 2020, Bertrand Mariaux; and by way of comparison (the same rules) to CLPs in this matter: La gérance des SCS - introduction #184-173*, 21 juin 2020, Bertrand Mariaux.

*Podcast #327

Management of an SLP / SCSp - Introduction-VII *Article #327-316* *YouTube Video 316* . . . . . . . . #ImpactInvesting , #corporate , #avocat , #ServeAndThrive , #ThriveAndAccomplishYourMission , #MariauxAvocats , #MissionDriven , #MissionDrivenVenture , #alternativeinvestment , #limitedpartnership , #LP , #SpecialLimitedPartnership , #SLP , #SCSp , #sociétéencommanditespéciale, #DFI https://www.linkedin.com/pulse/management-slp-scsp-introduction-vii-bertrand-mariaux To see this publication, go to our blog The VADE-MECUM - https://mariauxavocats.com/vademecum.

*YouTube Video 316*

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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

How may an SLP be declared void? - SLP VI - #326-315*

This question is interesting in order to determine what has to be included in the limited partnership agreement of a special limited partnership (SLP - or société en commandite spéciale, SCSp). Let’s see how we may avoid taking any risk in this respect.

An SLP may only be declared void:

1. if the constitutive document does not contain any indication as to: 

   1. the denomination of the partnership; or

   2. its corporate purpose.

2. if the corporate purpose is:

   1. unlawful; or

   2. contrary to public policy (ordre public);

3. if the partnership does not include at a minimum - validly committed and distinct from each other ; 

   1. a general partner (associé commandité); and

   2. a limited partner (associé commanditaire).

References: Article 320-1 (8) of the law of 10 August 1915 on commercial companies as amended; Les cas de nullité d’une SCSp - #205-194*, 12 juillet 2020, Bertrand Mariaux ; #325-314*Domicile and presumption of central administration - SLP/SCSp V, February 10, 2021, Bertrand Mariaux.

*Podcast #326

How may an SLP be declared void? #326-315* *Article #326-315* *YouTube Video 315* . . . . . . . . #ImpactInvesting , #corporate , #avocat , #ServeAndThrive , #ThriveAndAccomplishYourMission , #MariauxAvocats , #MissionDriven , #MissionDrivenVenture , #alternativeinvestment , #limitedpartnership , #LP , #SpecialLimitedPartnership , #SLP , #SCSp , #sociétéencommanditespéciale, #DFI https://www.linkedin.com/pulse/vi-how-may-slp-declared-void-bertrand-mariaux To see this publication, go to our blog The VADE-MECUM - https://mariauxavocats.com/vademecum.

*YouTube Video 315*

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

Editor: Nikolai Shillinglaw

Domicile and presumption of central administration - SLP V - #325-314*

As is the case with any commercial company, the domicile of a special limited partnership (SLP - or société en commandite spéciale, SCSp) is at its head office.

The central administration is deemed to be located at the registered office of the company as stated in the SLP's partnership agreement.

Said presumption is simple (rebuttable - réfragable), i.e. it can be rebutted with proof to the contrary. 

References: Articles 320-1 (7) and §3 of article 100-2 of the law of 10 August 1915 on commercial companies as amended; #204-193* Domicile et présomption d’administration centrale (SCSp), July 11, 2020, Bertrand Mariaux.

*Podcast #325

Domicile and presumption of central administration - SLP #325-314* *Article #325-314* *Podcast #325 *YouTube Video 314* https://www.linkedin.com/pulse/domicile-presumption-central-administration-slpscsp-mariaux . . . . . . . . #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 314*

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

Editor: Nikolai Shillinglaw

What shall the register of a special limited partnership include? - SLP IV - #324-313*

The law states that a special limited partnership (SLP - or société en commandite spéciale - SCSp) must keep a register. What shall this register contain? The register of an SLP shall include the following items:

1. A complete and true copy of an up-to-date version (“copie intégrale et conforme”) of the partnership agreement;

2. A list of all partners, including:

   1. for natural persons:

      1. their surname; 

      2. their first name; 

      3. their profession; and 

      4. their private or professional address; 

   2. for partners who are legal entities:

      1. their company name;

      2. their legal form;

      3. their precise address;

      4. their registration number in the trade and companies register (if the legislation to which the company is subject provides for such a number);

   3. the partnership interest held by each partner;

3. A record of all transfers of issued partnership interests as well as: 

   1. the date of notification; or 

   2. acceptance of such transfers.

References: Article 320-1 (6) of the law of 10 August 1915 on commercial companies as amended; #323-SLP/SCSp-ii/III - Some of the particularities of the partners, January 26, 2021, Bertrand Mariaux; #203-192* Que doit contenir le registre d’une société en commandite spéciale ?, July 10, 2020, Bertrand Mariaux.

*Podcast #324:

What shall the register of a special limited partnership include? - SLP/SCSp IV - #324-313* *Article #324-313* *YouTube Video 313* . . . . . . #ImpactInvesting , #corporate , #avocat , #ServeAndThrive , #ThriveAndAccomplishYourMission , #MariauxAvocats , #MissionDriven , #MissionDrivenVenture , #alternativeinvestment , #limitedpartnership , #LP , #SpecialLimitedPartnership , #SLP , #SCSp To see this publication, go to our blog The VADE-MECUM - https://mariauxavocats.com/vademecum.

*YouTube Video 313*:

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

Editor: Nikolai Shillinglaw

Some of the particularities of the partners - SLP III - #323-312*

In our recent publication defining the special limited partnership (SLP - or société en commandite spéciale, SCSp), we referred to the fact that the SLP is a contractual partnership between two types of partners: the limited partner (associé commanditaire) on the one hand and the general partner (associé commandité) on the other.

In keeping with its contractual nature, the SLP may, unless otherwise provided for in the partnership agreement, have a general partner who is also a limited partner. This is only possible if the SLP has at least one limited partner and one general partner who are legally separate from each other.

We will also see that every SLP must keep a register and that, within the limits of the partnership agreement, any partner may consult it.

References: article 320-1 (5) and 320-1 (6) - last sentence - of the law of 10 August 1915 on commercial companies as amended; What is a special limited partnership? (#321-310*), Bertrand Mariaux; #202-191* De certaines particularités des associés (SCSp).

*Podcast #323:

Some of the particularities of the partners - SLP - #323 *Article #323-312* *YouTube Video 312* . . . . . . . . #ImpactInvesting , #corporate , #avocat , #ServeAndThrive , #ThriveAndAccomplishYourMission , #MariauxAvocats , #MissionDriven , #MissionDrivenVenture , #alternativeinvestment , #limitedpartnership , #LP , #SpecialLimitedPartnership , #SLP , #SCSp To see this publication, go to our blog The VADE-MECUM - https://mariauxavocats.com/vademecum.

*YouTube Video 312*:

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

Partners' contributions, issue of debt securities and impact on legal personality - SLP II - #322-311*

As you may know, the société en commandite spéciale (SCSp) or special limited partnership (SLP) does not have a legal personality.

We indicated in a previous publication (in French) that the SLP has no legal personality. The SLP does not constitute a legal individuality separate from its partners. Does this have an impact on the form that contributions may take, or on the possibility of issuing debt securities for an SLP?

The absence of legal personality does not affect the different forms of contributions to an SLP or the issue of debt securities. 

Contributions in cash, in kind or in industry are possible. Also, in accordance with the contractual nature of the SLP, all new contributions (admission of new members - not in relation to the transfer of partnership interests) are carried out in accordance with the terms and conditions set out in the partnership agreement. 

The issue of debt securities will of course be possible as for any other Luxembourg company.

References: Articles 320-1 (2), (3) and (4), 100-14 §1 of the law of 10 August 1915 on commercial companies as amended; Société en commandite spéciale et caractéristiques de la personnalité morale des sociétés #109-98*, April 7, 2020, Bertrand Mariaux; Apports des associés, émission de titres de créance et incidence sur l’absence de personnalité juridique (SCSp) - #201-190*, July 8, 2020, Bertrand Mariaux; Toute société peut-elle émettre des obligations ? L’émission de valeurs mobilières (i) - #129-118* , April 27, 2020, Bertrand Mariaux. 

*Podcast #322:

Partners' contributions, issue of debt securities and impact on legal personality (SCSp / SLP) #322-311* *Article #322-311* *YouTube Video 311* . . . . . . . .

*YouTube Video 311*: 

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)

What Is a Special Limited Partnership ? (Société en Commandite Spéciale) - SPL I - #321-310*

A special limited partnership (SLP) or société en commandite spéciale (SCSp - in French) is one of the limited partnerships under Luxembourg law.

The SLP is formed by a partnership agreement which provides for the terms and conditions of the company. The SLP agreement is entered into, for a limited or unlimited duration, by: 

• one or more general partners (associés commandités) with unlimited, joint and several liability for the commitments of the partnership, with 

• one or more limited partners (associés commanditaires) who commit only a predetermined amount of partnership interests, whether or not represented by securities, in accordance with the terms and conditions provided for in the partnership agreement.

References: Article 320-1 (1) of the law of 10 August 1915 on commercial companies as amended; Qu’est-ce qu’une société en commandite spéciale ? July 7, 2020, Bertrand Mariaux.

*Podcast #321

What Is a Special Limited Partnership (Société en Commandite Spéciale) - #321-310* *Article #321-310* *YouTube Video 310* . . . . . . . .

*YouTube Video 310*

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

Editor: Hannah Seulgee Jung