Partners' limited: limited liability in partnerships structure: an overview of the common law and the Shariah

Unlimited liability of partners is undoubtedly the hallmark of partnerships structure/laws. This principle emphasises on partners having collective responsibilities for debts and liabilities of the firm. The extent of unlimited liability of partners in partnership includes their personal assets. The...

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Main Author:	Abd Ghadas, Zuhairah Ariff
Format:	Article
Language:	English
Published:	LexisNexis Malaysia Sdn Bhd 2009
Subjects:	K Law (General) KBP Islamic Law
Online Access:	http://irep.iium.edu.my/7585/ http://irep.iium.edu.my/7585/1/2009_-_Partners%27_limited-_Limited_liability_in_partnerships_structure-_An_overview_of_the_common_law_and_the_Shariah.pdf

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recordtype	eprints
spelling	iium-75852012-02-22T23:47:53Z http://irep.iium.edu.my/7585/ Partners' limited: limited liability in partnerships structure: an overview of the common law and the Shariah Abd Ghadas, Zuhairah Ariff K Law (General) KBP Islamic Law Unlimited liability of partners is undoubtedly the hallmark of partnerships structure/laws. This principle emphasises on partners having collective responsibilities for debts and liabilities of the firm. The extent of unlimited liability of partners in partnership includes their personal assets. The principle of unlimited liability in partnership is constantly criticised because it impose heavy obligation and high business risk upon partners. As business expands and the firm gets bigger, it is more difficult for partners to know each other and what more to trust them to the extent of bearing each other's liabilities. The concept of unlimited liability may be appropriate for small and family partnerships whereby partners know each other but in big and international firms where partners are mostly strangers, it is not practical to apply unlimited liability. In recent years, the partnerships structure/laws went through rapid changes from mere general partnership to limited partnership ('LP'), limited liability partnership ('LLP') with a separate legal entity and LLP with a status of body corporate. Under the Islamic law, partnerships structure (sharikah) has an established reputation and clear recognition as a valid business vehicle. The application of limited liability in sharikah is also well established and clearly justified. This paper intends to highlight the development of common law partnerships structure/laws with a special reference to the application of limited liability. The Islamic perspectives are deliberately included to highlight the apparent possibilities of implementing limited liability in partnerships structure. LexisNexis Malaysia Sdn Bhd 2009 Article PeerReviewed application/pdf en http://irep.iium.edu.my/7585/1/2009_-_Partners%27_limited-_Limited_liability_in_partnerships_structure-_An_overview_of_the_common_law_and_the_Shariah.pdf Abd Ghadas, Zuhairah Ariff (2009) Partners' limited: limited liability in partnerships structure: an overview of the common law and the Shariah. Shariah Law Reports, 1. pp. 45-57. ISSN 1985-4250
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	K Law (General) KBP Islamic Law
spellingShingle	K Law (General) KBP Islamic Law Abd Ghadas, Zuhairah Ariff Partners' limited: limited liability in partnerships structure: an overview of the common law and the Shariah
description	Unlimited liability of partners is undoubtedly the hallmark of partnerships structure/laws. This principle emphasises on partners having collective responsibilities for debts and liabilities of the firm. The extent of unlimited liability of partners in partnership includes their personal assets. The principle of unlimited liability in partnership is constantly criticised because it impose heavy obligation and high business risk upon partners. As business expands and the firm gets bigger, it is more difficult for partners to know each other and what more to trust them to the extent of bearing each other's liabilities. The concept of unlimited liability may be appropriate for small and family partnerships whereby partners know each other but in big and international firms where partners are mostly strangers, it is not practical to apply unlimited liability. In recent years, the partnerships structure/laws went through rapid changes from mere general partnership to limited partnership ('LP'), limited liability partnership ('LLP') with a separate legal entity and LLP with a status of body corporate. Under the Islamic law, partnerships structure (sharikah) has an established reputation and clear recognition as a valid business vehicle. The application of limited liability in sharikah is also well established and clearly justified. This paper intends to highlight the development of common law partnerships structure/laws with a special reference to the application of limited liability. The Islamic perspectives are deliberately included to highlight the apparent possibilities of implementing limited liability in partnerships structure.
format	Article
author	Abd Ghadas, Zuhairah Ariff
author_facet	Abd Ghadas, Zuhairah Ariff
author_sort	Abd Ghadas, Zuhairah Ariff
title	Partners' limited: limited liability in partnerships structure: an overview of the common law and the Shariah
title_short	Partners' limited: limited liability in partnerships structure: an overview of the common law and the Shariah
title_full	Partners' limited: limited liability in partnerships structure: an overview of the common law and the Shariah
title_fullStr	Partners' limited: limited liability in partnerships structure: an overview of the common law and the Shariah
title_full_unstemmed	Partners' limited: limited liability in partnerships structure: an overview of the common law and the Shariah
title_sort	partners' limited: limited liability in partnerships structure: an overview of the common law and the shariah
publisher	LexisNexis Malaysia Sdn Bhd
publishDate	2009
url	http://irep.iium.edu.my/7585/ http://irep.iium.edu.my/7585/1/2009_-_Partners%27_limited-_Limited_liability_in_partnerships_structure-_An_overview_of_the_common_law_and_the_Shariah.pdf
first_indexed	2023-09-18T20:17:03Z
last_indexed	2023-09-18T20:17:03Z
_version_	1777407857648467968

Partners' limited: limited liability in partnerships structure: an overview of the common law and the Shariah

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