Denis Naughten
Ceist:129 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. [30588/08]
Amharc ar fhreagraWednesday, 24 September 2008
Ceisteanna (43)
Freagraí scríofa
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 and auditing professions, 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. The 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 legislation on 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. Such consultation should also include consideration of whether the general statutory limitation on twenty members should be maintained. The consultation process will take place during the coming months as part of the CLRG's 2008-2009 Work Programme. The Group will then reconsider the matter based on the responses received.
I await the CLRG's further examination of the issue.
In addition to the foregoing, the CLRG examined the concerns of the accounting/auditing profession regarding auditors' liability and made separate recommendations in this regard. My Department is considering these recommendations.