Partnership law report on a reference under section 3(1)(e) of the Law Comm.65

At the beginning of 2002, there were almost 568,000 business partnerships operating in the UK with a combined turnover of £136,902 million, providing substantial employment and playing a key economic role. They vary in size and formality, require less regulation than other types of business as partners have unlimited liability for the debts incurred by the partnership, and also enjoy a large degree of privacy in financial matters. Following on from previous joint consultation papers from the Law Commission and the Scottish Law Commission on the topic (Consultation paper no. 159/Discussion paper no. 111, ISBN 0117302449 & Consultation paper no. 161/Discussion paper 118, ISBN 0117302465), this report summarises existing partnership law and makes recommendations for its reform. These reforms are designed to preserve its flexibility and informality, encourage continuity, preserve mutual trust and good faith, and provide a modern law of partnership which is clear to advisers and clients. A draft Bill is given as an appendix, which deals with both general partnerships and limited partnerships, and is designed to replace both the Partnership Act 1890 and the Limited Partnerships Act 1907.