To avoid the Lee & Li Event from arising again, the Council for Economic Planning and Development (CEPD) drafted the “Limited Partnership Law” (有限合夥法)

The outbreak of the case in which the employers of Lee & Li Law Firm stole and sold the stocks which their clients entrusted Lee & Li to sell revealed the insufficient legal regulations on the “partnership system” in this country. CEPD intends to draft “Limited Partnership Law”, in which the partners will bear limited responsibility rather than unlimited responsibility so that the responsibility borne to the partners of law firms or accountant companies could be specifically defined.

 

Facing the regression of Investment Industry, CEPD intends to introduce the “limited partnership system” which has been applied in foreign countries so as to help the Investment Industry acquire flexible funds and reduce the risk of investment management faced by the Investment Industry. In this way, the responsibilities borne to the stockholder of the investment fund initiators and ordinary stockholders could be definitely stipulated, that is, the ordinary stockholders who simply provide financial support bear limited responsibility while the stockholders of fund initiators bear unlimited responsibility.

 

For the time being, CEPD entrusted the relevant experts to work on the details of the articles concerning the establishment, interior relationship and external relationship of limited partnership system, the participation and withdrawal of the partners, the accounting, dissolution, alternation, liquidation, land taxes and other levies, and so on. Upon the Limited Partnership Law being legislated, the law will be applied to Investment Industry at the preliminary stage and will be applied to law firms or accountant companies in the future. (2004.03)

CYJ/WYL