Summary

(translated by M.-E. Ilja)

A partnership is a business association, whose partners are liable for the obligations of the company with all their assets. A limited partnership has two kinds of shareholders - general partners who are liable for the obligations of the company with all their assets, and limited partners who are liable only to the extent of their investment.

Several formalities concerning partnerships and limited partnerships have been abolished. Until now a partnership agreement was to be concluded in writing. The new Business Code, however, does not prescribe the form of such agreements, therefore a partnership agreement can also be concluded orally.

The state or a local government can appear neither as a partner of a general partnership nor as a general partner of a limited partnership. No such restrictions have been imposed on other persons.

The relations between partners can be arranged at their own discretion. However, the relations with third persons are exactly regulated by the law.

The termination of general partnerships and limited partnerships as well as the expulsion of a partner from a partnership are governed by rather complicated rules. Upon the death of a partner, his/her heir can take the former's place in the business association, or the heirs are entitled to compensation only. A creditor may demand expulsion of a partner from the business association in case the creditor's claims cannot be satisfied out of the partner's assets.

If a business association has two partners, and one of them withdraws from the association or is expelled therefrom, the court may decide that the remaining partner shall continue the activity of the association as a natural person acting in the capacity of an entrepreneur.