Denis Naughten
Question:38 Deputy Denis Naughten asked the Tánaiste and Minister for Enterprise, Trade and Employment her plans to update the partnership law; and if she will make a statement on the matter. [19800/08]
View answerThursday, 19 June 2008
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The Company Law Review Group (CLRG) was asked, as part of its Work Programme for 2007, to examine the issue of "Limited Liability Partnerships" (LLPs). This follows from concerns, particularly of the legal profession, about the consequences of unlimited liability on partners in a firm.
The Report of the CLRG on its 2007 Work Programme has been presented to me and laid before the Houses of the Oireachtas.
In its Report, the CLRG outlines the problems which current partnership law is perceived to cause for certain types of business organisation in Ireland and concludes that the problems are real and substantial. CLRG explores how the introduction of LLP legislation could address these problems and the types of safeguards which might need to be put in place to protect clients, customers and third parties generally, in their dealings with LLPs. The CLRG also considers whether the problems raised by current partnership law can be resolved by other means, without the need to amend the law of partnership.
The CLRG came to the conclusion that a final decision on whether LLPs should be introduced, and on the shape and form which LLP legislation should take, can only be reached after a full consultation process involving all of those affected by the issues arising. To that end the CLRG's Report poses a series of questions and the Review Group intends to reconsider the matter based on the responses to those questions. I await the CLRG's further examination of the issue.