What is the partnership system?

In other words, two or more partners own the company and share its profits, and the partners are the owners or shareholders of the company.

Its main features are: partners * * * enjoy the operating income of the enterprise and bear unlimited responsibility for operating losses * * *; It can be run by all partners * * *, or by some partners, and the other partners only contribute and are responsible for their own profits and losses; The composition of partners can be large or small.

At present, there are basically three types of enterprises implementing the partnership system in China, accounting firms, law firms and consulting companies. Generally speaking, developing enterprises are not necessarily suitable for the partnership system.

According to the Law of People's Republic of China (PRC) on Partnership Enterprises (1adopted at the 24th meeting of the Standing Committee of the Eighth NPC on February 23rd, 1997,1promulgated by Decree No.82 of the President of the People's Republic of China on February 23rd, 1997), this law will come into force on August 30th, 1997. )

Article 2 The term "partnership enterprise" as mentioned in this Law refers to the general partnership enterprise and limited partnership enterprise established in China by natural persons, legal persons and other organizations in accordance with this Law.

A general partnership consists of general partners, who are jointly and severally liable for the debts of the partnership. Where this Law has special provisions on the liability form of general partners, such provisions shall prevail.

A limited partnership consists of a general partner and a limited partner. The general partner shall be jointly and severally liable for the debts of the partnership, and the limited partner shall be liable for the debts of the partnership to the extent of the subscribed capital contribution.

Article 3 Wholly state-owned companies, state-owned enterprises, listed companies, public welfare institutions and social organizations shall not become general partners.

Extended data:

The advantages of the partner system are mainly manifested in the following aspects:

1. The material interests of owners and operators have been reasonably distributed and guaranteed by the system.

In limited partnership investment banks, limited partners provide about 99% of the funds and share about 80% of the income; General partners enjoy economic benefits such as management fees and profit distribution. The management fee is generally charged at a certain proportion of the total assets managed by the general partner, which is about 3%. In the profit distribution, the general partner can get 20% of the investment income distribution with the capital of 1% at most.

2. In addition to the material incentives provided by economic interests, the limited partnership system also has strong spiritual incentives for general partners, that is, power and status incentives.

3. Limited partnership system Because the operator is also the owner of the enterprise and bears unlimited responsibilities, it can control risks through self-discipline in business activities and easily gain the trust of customers; At the same time, because excellent business backbones have the opportunity to be absorbed as new partners, the partnership system can encourage employees to forge ahead and remain loyal to the company, and push the enterprise into a benign development track.

4. The institutional arrangement of limited partnership also fully embodies the principle of reciprocity of incentives and constraints.

Baidu Encyclopedia-Partner System