The Act completely modernises the law with respect to limited partnerships much in the way that the BVI Business Companies Act, 2004 completely modernised the British Virgin Islands corporate regime.
The limited partnership structure will be familiar to most clients. A limited partnership is comprised of one or more general partners (the GPs, who manage the business of the partnership) and one or more limited partners (the LPs, who act as largely silent investors). The affairs of the limited partnership are governed primarily by the limited partnership agreement (LPA), making the relationship a contractual one, albeit subject to certain core statutory requirements. While limited partnerships have been available in the British Virgin Islands since 1996, the legislation allowing for them has not kept pace with commercial needs, making them relatively unattractive, particularly when compared to the popular and functional BVI business company. With this new Act, that changes.
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