Following on from its original introduction in 1997, the legislation governing the limited liability partnership (LLP) in Jersey has recently undergone significant revision and the Limited Liability Partnerships (Jersey) Law 2017 is to come into force on 1 August 2018. Key features to this flexible vehicle include:
Partners may contribute capital or skill and effort to the business of the LLP
The LLP has its own legal personality distinct form its partners but is not a body corporate
Partners shall act as agents of the LLP but not of each other
Partners shall generally not be liable for any debt or loss for which the LLP is liable
We expect the LLP will be useful in a wide variety of circumstances as an organisation for the conduct of services businesses and for investment activity. In particular the structure will permit both passive investors and active partners to operate within the same structure. The internal organisation of the LLP will typically be governed by an agreement amongst the partners, the content of which is highly flexible allowing the LLP to be adapted to many different circumstances. Where the LLP is to be used in the provision of investment services in the funds sector, the Jersey Financial Services Commission (in conjunction with Appleby and others) has developed a detailed and comprehensive licensing policy. Appleby advised on the first regulated LLP in Jersey and the first regulated structure involving an LLP in Jersey.