LD 1609
pg. 10
Page 9 of 148 An Act To Establish the Uniform Partnership Act Page 11 of 148
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LR 1469
Item 1

 
The definition of a "limited liability partnership" makes
clear that a partnership may adopt the special liability shield
characteristics of a limited liability partnership simply by
filing a statement of qualification under Section 1001. A
partnership may file the statement in this State regardless of
where formed. When coupled with the governing law provisions of
Section 106(b), this definition simplifies the choice of law
issues applicable to partnerships with multi-state activities and
contacts. Once a statement of qualification is filed, a
partnership's internal affairs and the liability of its partners
are determined by the law of the State where the statement is
filed. See Section 106(b). The partnership may not vary this
particular requirement. See Section 103(b)(9).

 
The reference to a "partnership" in the definition of a
limited liability partnership makes clear that the RUPA
definition of the term rather than the UPA concept controls for
purposes of a limited liability partnership. Section 101(6)
defines a "partnership" as "an association of two or more persons
to carry on as co-owners a business for profit formed under
Section 202, predecessor law or comparable law of another
jurisdiction." Section 202(b) further provides that "an
association formed under a statute other than this [Act], a
predecessor statute, or a comparable statute of another
jurisdiction is not a partnership under this [Act]." This
language was intended to clarify that a limited partnership is
not a RUPA general partnership. It was not intended to preclude
the application of any RUPA general partnership rules to limited
partnerships where limited partnership law otherwise adopts the
RUPA rules. See Comments to Section 202(b) and Prefatory Note.

 
The effect of these definitions leaves the scope and
applicability of RUPA to limited partnerships to limited
partnership law, not to sever the linkage between the two Acts in
all cases. Certain provisions of RUPA will continue to govern
limited partnerships by virtue of Revised Uniform Limited
Partnership Act (RULPA) Section 1105 which provides that "in any
case not provided for in this [Act] the provisions of the Uniform
Partnership Act govern." The RUPA partnership definition
includes partnerships formed under the UPA. Therefore, the
limited liability partnership rules will govern limited
partnerships "in any case not provided for" in RULPA. Since
RULPA does not provide for any rules applicable to a limited
partnership becoming a limited liability partnership, the limited
liability partnership rules should apply to limited partnerships
that file a statement of qualification.

 
Partner liability deserves special mention. RULPA Section
403(b) provides that a general partner of a limited partnership
"has the liabilities of a partner in a partnership without


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