We explain what a collective society is and the structure of its administration. Also, examples and what is a limited partnership.
What is a partnership?
In commercial law, a collective society is understood to be one of the modes of mercantile society that exist, that is, an external company (which acts as a different person from that of its partners) that carries out commercial or civil activities under the same name or company name. In other words, it is a form of commercial grouping.
Being a direct descendant of the mercantile companies originating in the Middle Ages, it is a question of one of the oldest corporate forms that exist. It usually occurs as a continuation of a merchant’s inheritance, and even as an extension of a family business.
The collective partnership has as its main and distinctive feature an unlimited liability for debt, that is, in case of not being able to cover its debts not even for the liquidation of its assets, bankruptcy cases, suspension of payments, among others, the partners of the same they must take charge of the payment to the creditors. In the latter it is distinguished from other ways such as anonymous society wave limited liability company.
On the other hand, the administration of this type of company can occur from a structural point of view, as follows:
- Legal. Any partner of the same will be the administrator, whose action must be agreed plurally. This method is imposed when the statutes do not say anything about the administration of the company.
- Privative. The company has an express administrator, appointed by an express agreement or by the company statutes, and said responsibility will not be transferable without the signing of another agreement.
- Not exclusive. The figure of one or more possible administrators is established by agreement or contract, but said position will not be linked to the individual, but may be occupied by others, according to the instructions of the partners.
Examples of partnership
Possible examples of partnerships are law firms, the studies of architects, economists or auditors, when not medical groups; Collective organizations in which the prestige of its members and the trust they arouse is key to obtaining new clients.
Limited partnership
A limited partnership or limited partnership is, on the other hand, a type of society of a personalistic order, which at the same time presents general partners who respond unlimitedly to the debts contracted and participate in the management of the company; and limited partners who do not take part in the management but neither in the responsibilities that exceed the capital strictly committed to the limited partnership.