Some considerations on the general partnership

Author:Ana Maria Lupulescu
Position:Department of Law, Bucharest University of Economic Studies, Romania
Pages:6-16
SUMMARY

The general partnership is the prototype of company of persons, since it is set up and functions based on the personal qualities of the associates, who know each other and trust each other, reason for which they agree to be unlimitedly and jointly bound for the obligations of the company they set up. Although this legal form of company is not very widespread in practice, which is undoubtedly... (see full summary)

 
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STUDIES AND COMMENTS
Some considerations on the general partnership
Lecturer Ana-Maria LUPULESCU
1
Abstract
The general partnership is the prototype of company of persons, since it is set up
and functions based on the personal qualities of the associates, who know each other and
trust each other, reason for which they agree to be unlimitedly and jointly bound for the
obligations of the company they set up. Although this legal form of company is not very
widespread in practice, which is undoubtedly explained by the risk determined by the
unlimited and joint liability of the associates, the general partnership still presents some
unquestionable advantages, worth to be emphasized, starting from the simplicity of the
rules concerning its setting up and functioning, or the possibility of its cr eation even in the
absence of initial contributions of significant value. Moreover, the continuity of the
associates' options for this legal form of company demonstrates that it is not totally
obsolete and lacking in practical interest, but it has successfully survived the passage of
time, also considering the fact that its legal regulation has not changed significantly over
the years. Within this context, we consider that an analysis of this form of company, even
though is not intended as exhaustive, but highlights particular significant aspects that
underline its juridical specificity, may appear important and particularly useful, both for
analysts in law and practitioners.
Keywords: general partnership, specific aspects, companies of persons, unlimited
and joint liability.
JEL Classification: K22
1. Introduction
The general partnership is the prototype of company of persons
2
, since this
legal form of company is set up and functions based on the personal qualities of the
associates, who know each other and trust each other, reason for which they agree
to be unlimitedly and jointly bound for the obligations of the company they set up.
As far as the legal framework applicable to the general partnership is
concerned, we emphasize that it is included among the forms of company
1
Ana-Maria Lupulescu Department of Law, Bucharest University of Economic Studies, Romania,
anamarialupulescu@yahoo.com
2
According to the traditional classification of the companies regulated by Law no. 31/1990
republished, a distinction is made between the companies of persons, whose setting up and
functioning are determined and based on the personal element, and the companies of capitals, in
which the personality of the associates is indifferent, and their setting up and functioning only take
into account the material element, namely the contributions of the associates.

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