Law Commons^™

Limitation Of Liability Of Limited Partners While Affording Control Of Partnership Affairs To Limited Partners., Kenneth L. Bennight Jr., Troy (Trey) S. Martin Iii

St. Mary's Law Journal

This article examines the liability provisions of the Texas Revised Act Section 3.03 and compares it with other uniform limited partnership acts. It attempts to ascertain the amount of control a limited partner can exercise over the partnership without risking unlimited liability as a general partner. Limited partners invest capital and share in the profits of the business, but their liability is limited to the amount of capital they invest. If the limited partners exercise control over the business, however, the limited partners may forfeit their limited liability and become liable as general partners. In the last century, the law …