Internal Affairs And Limited Partnerships

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Allen Matkins

What law governs the relations among the partners of a limited partnership and what law governs the relations between the partners and a limited partnership?   Section 15901.06 of the California Corporations Code provides a partial answer to both of these questions.  It provides that the law of California "governs relations among the partners of a limited partnership and between the partners and the limited partnership . . .".  The statute provides a partial answer because the California Uniform Limited Partnership Act of 2008 defines a "limited partnership" as an entity formed under that act or that becomes subject to that act as a result of conversion or the transition provisions of the act with respect to preexisting entities.  Cal. Corp. Code § 15901.02(q).

The remaining part of the answer is supplied by Section 15909.01 which provides that the laws of the state or other jurisdiction under which a foreign limited partnership is organized govern relations among the partner of the foreign limited partnership and between the partners and the foreign limited partnership.  A "foreign limited partnership" is a partnership formed under the laws of a jurisdiction other than California and required by those laws to have one or more general partners and one or more limited partners.  Cal. Corp. Code § 15901.02(k).   The term includes a foreign limited liability limited partnership.  Id.  

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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