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Partnership limit
The current limit on the number of partners in partnerships is set to be removed by the Government through a regulatory reform order. Subject to Parliamentary approval, the order will remove the limit, currently set at 20 partners for partnerships and limited partnerships.
Consultation on removing the limit has taken place, and the reasons for respondents supporting the proposal include:
Partnership limit
The current limit on the number of partners in partnerships is set to be removed by the Government through a regulatory reform order. Subject to Parliamentary approval, the order will remove the limit, currently set at 20 partners for partnerships and limited partnerships.
Consultation on removing the limit has taken place, and the reasons for respondents supporting the proposal include:
* the limit is outdated and unnecessary;
* it places an unnecessary burden on business by preventing the expansion of business by the introduction of new partners;
* large partnerships are increasingly becoming multi-disciplinary and there would therefore be an increase in applications to the Secretary of State for exemption from the 20-partner limit; and
* its removal would provide greater flexibility for investors in the private equity sector.
(Source: Department of Trade and Industry press release 2001/619 dated 9 November 2001.)
