Announcement of new limited partnership regime

The Government has announced that a Bill to give effect to a new limited partnership regime will be introduced next year to encourage venture capital investment in New Zealand.

The Government has announced a new limited partnership regime in order to encourage venture capital investment into New Zealand. A Bill is expected to be introduced in 2006 setting out the legislation necessary to give effect to the new regime.

A limited partnership has separate legal personality and comprises general and limited partners. A general partner is personally liable for the debts of the partnership, but limited partners are liable only to the extent of their investments and only have management involvement in limited circumstances (similar to company shareholders). New Zealand limited partnerships will be given flow-through tax status under the new legislation.

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