CAP. 258, LIMITED LIABILITY PARTNERSHIPS ACT BELIZE
LIMITED LIABILITY PARTNERSHIP ACT
CHAPTER 258
REVISED EDITION 2000
SHOWING THE LAW AS AT 31ST DECEMBER, 2000
This is a revised edition of the law, prepared by the Law Revision Commissioner
under the authority of the Law Revision Act, Chapter 3 of the Laws of Belize,
Revised Edition 1980 - 1990.
This edition contains a consolidation of the following laws- Page
ARRANGEMENT OF SECTIONS 3
LIMITED LIABILITY PARTNERSHIP ACT 7
Amendments in force as at 31st December, 2000.
BELIZE
LIMITED LIABILITY PARTNERSHIP ACT
CHAPTER 258
REVISED EDITION 2000
SHOWING THE LAW AS AT 31ST DECEMBER, 2000
This is a revised edition of the law, prepared by the Law Revision Commissioner
under the authority of the Law Revision Act, Chapter 3 of the Laws of Belize,
Revised Edition 1980 - 1990.
This edition contains a consolidation of the following laws- Page
ARRANGEMENT OF SECTIONS 3
LIMITED LIABILITY PARTNERSHIP ACT 7
Amendments in force as at 31st December, 2000.
THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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the Government of Belize.
Limited Liability Partnerships [CAP. 258
[ ]
3
CHAPTER 258
LIMITED LIABILITY PARTNERSHIPS
ARRANGEMENT OF SECTIONS
PART I
Preliminary
1. Short title.
2. Interpretation.
PART II
Essentials of a Limited Liability Partnership
3 . Limited liability partnerships.
4. Limited liability partnership property.
5. Liability of a limited liability partnership.
6. Liability of a partner or former partner in a limited liability partnership.
7. Requirement for and payment of financial provision.
8. Nature of a limited liability partnership.
9. Registered office.
10. Accounts and audit.
11. Keeping and form of limited liability records.
PART III
Relationship of Partners with one another and Third Parties
12. Relationship of partners to one another.
13. Dealings of partners with limited liability partnership.
14. Admissions and retirement of partners.
15. Assignments, etc.
16. Agency of partners in a limited liability partnership.
PART IV
Registration of a Limited Liability Partnership
17. Registration of a limited liability partnership.
18. Amendment of declaration.
19. Annual declaration.
20. Validity and proof of registration.
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PART V
Dissolution and Winding-Up, etc.
21. No dissolution upon a change in the partners of a limited liability part-
nership.
22. Dissolution upon partnership ceasing to have two or more partners.
23. Dissolution by act of partner or other occurrence.
24. Power of Court to order dissolution.
25. Continuation of partnership following dissolution.
26. Winding-up.
27. Power of Court to give directions as to winding-up .
28. Application of financial provision.
29. Settling accounts on winding-up.
30. Completion of winding-up.
31. Cancellation of registration following winding-up, etc.
PART VI
Miscellaneous and General
32. Recognition of proceedings in other jurisdictions.
33. Legal proceedings.
34. Service of documents.
35. Order for compliance.
36. Appointment and functions of Registrar.
37. Fees and forms.
38. Inspection and production of documents kept by the Registrar.
39. Destruction of old records, etc.
40. Registration in the Registry.
41. Offences.
42. Aiders and abettors.
43. Penalty for offences.
44. Regulations relating to insolvent limited liability partnerships.
45. Regulations to amend section 7.
46. Orders.
47. Customary Law.
48. Commencement.
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CHAPTER 258
LIMITED LIABILITY PARTNERSHIPS
[3rd May, 1999]
PART I
Preliminary
1. This Act may be cited as the Limited Liability Partnerships Act.
2.-(1) In this Act, unless the context otherwise requires:-
“act” includes omissions;
“annual declaration” shall be construed in accordance with section 18;
“Attorney General” shall mean the person appointed as such under the laws of
Belize;
“Bank” means a person registered under the Banks and Financial Institutions
Act, and any statutory modification thereto;
“charge” includes a security interest created in accordance with the Interna-
tional Business Companies Act and any statutory modification thereto, and
cognate terms shall be construed accordingly;
“Court” means the Supreme Court of Judicature of Belize or a judge thereof;
“debt” includes obligation;
“declaration” means a declaration delivered to the Registrar pursuant to section
13 of 1999.
Commencement
[ 1. 7. 1 9 9 9 ]
S. I. 71of 1999.
Short title.
Interpretation.
CAP. 263.
CAP. 270.
17 together with any statement delivered to the Registrar pursuant to section
18 or subsection (2) of section 25, specifying a change in the information
stated in it;
“Deputy Registrar” means the Deputy Registrar appointment by the compe-
tent authority to act as Deputy Registrar;
“designated partner” means, in relation to a limited liability partnership, any
partner identified as such in the declaration or, if none, the partner whose
name first appears in the statement of partners in the declaration;
“dollar or $” means the currency of the United States of America ;
“insolvent” shall be construed in accordance with subsection (2) below;
“insurance company” means a company carrying on insurance business in ac-
cordance with the requirements of the International Insurance Act, and any
statutory modification thereto;
“limited liability partnerships” shall be construed in accordance with section 3;
“limited liability partnership property” as the meaning given to it in subsection
(1) of section 4;
“loss” includes damage and injury;
“Minister” shall mean the Minister appointed for the supervision of limited
liability partnerships;
“partner” means, in relation to a limited liability partnership, any person who is
a partner and named as such in the declaration;
“partnership agreement” means any agreement of the partners as to the affairs
CAP. 269.
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of a limited liability partnership and the rights and obligations of the partners
among themselves;
“partnership interest” means, in relation to a partner in a limited liability partner-
ship, a share of the profits and losses of the partnership and a right to receive
distributions of the limited liability partnership property, including any sum due
to the partner and for the time being retained in the partnership, otherwise than
by way of loan, together with any other benefit conferred by the partnership
agreement other than any liability of the partnership to him byway of loan;
“prescribed” means prescribed by Order made by the Minister;
“property” means land, money, goods, things in action, goodwill, and every
valuable thing, whether movable or immovable, and whether situated in Belize
or elsewhere, and also means obligations, and every description of estate, in-
terest, and profit, present or future, vested or contingent, arising out of or inci-
dental to property;
“register” means the register maintained pursuant to subsection (2) of section
36;
“Registrar” shall be construed in accordance with subsection (1) of section 36
and “his sea” means a seal prepared under that section;
“Registry” means the International Business Companies Registry;
“registration date” means, in relation to a limited liability partnership, the date
specified in the certificate issued pursuant to subsection (5) of section 17;
“Regulations” mean regulations made by the Minister from time to time for the
better carrying out of the provisions of this Act and for prescribing anything that
needs to be prescribed;
“retirement” means any act or occurrence whereby a person ceases to be a
partner in a limited liability partnership, other than by where the person is an
individual, his death or, where the person is not an individual, its ceasing to
exist.
(2) For the purposes of this Act, a limited liability partnership is insolvent
if it is unable to discharge its debts, including any liability to a partner or former
partner by way of loan but excluding any liability to a partner or former partner
in respect of partnership interest or otherwise, as they fall due prescribed;
(3) For the purposes of this Act, any reference to a loan includes any
payment of interest on the loan which has fallen due.
(4) In this Act, where a limited liability partnership has more than one
designated partner: -
(a) anything that a designated partner is required by this Act to
do may be done by any one of the designated partners; and
(b) anything which constitutes an offence by a designated partner
under this Act constitutes an offence by each of the desig-
nated partners.
(5) Where more than one person is responsible for winding-up the affairs
of a limited liability partnership, subsection (4) shall have effect in relation to
the persons responsible for winding-up the affairs of the limited liability part-
nership as it has effect in relation to designated partners.
(6) In this Act, except as provided in subsection (8) of section 7, any
reference to the person responsible for winding-up the affairs of a limited li-
ability partnership shall be construed as a reference to the person so respon-
sible by virtue of subsection (1) or (2) of section 26 or subsection (5) of
section 32.
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(7) In this Act, any requirement to give the name and address of any per-
son shall be construed as a requirement to give:-
(a) where the person is an individual, his full name and an address
for service in Belize;
(b) where the person is a body corporate, its full name, the place
where it is incorporated, and its registered office;
(c) where the person is a limited liability partnership, its name, as it
appears in its declaration, and its registered office; and
(d) in any other case not covered in paragraphs (a) to (c) above,
its full name and principal place of business.
PART II
Essentials of a Limited Liability Partnership
3.-(1) A limited liability partnership shall only have the benefit of this Act if and
for so long as it is registered in accordance with this Act.
(2) A limited liability partnership may be registered where persons who
wish a business to be carried on with a view of profit have agreed (with or
without other terms):-
(a) that the business shall be carried on, following the registration
date, in the form of a limited liability partnership;
(b) that they shall each contribute effort and skill to the business
as an agent of the limited liability partnership but not of each
other, in accordance with section 16; and
(c) that the profit of the business shall be divided between them
Limited liability
partnerships.
and that they shall each have an interest in the limited liability
partnership property to the extent described in subsection (6).
(3) Registration of a limited liability partnership shall take effect upon its
registration date, and shall cease to have effect upon cancellation of its regis-
tration pursuant to section 31.
(4) Except as provided in subsection (4) of section 26, a limited liability
partnership is a legal person (other than a body corporate) distinct from the
partners of whom it is for the time being composed and accordingly (but with-
out limitation):-
(a) any contract which binds the limited liability partnership is made
only with the legal person; and
(b) any change in the limited liability partnership brought about by
the admission, retirement or death of a partner, or by a part-
ner other than an individual, ceasing to exist, shall not affect
the existence, rights or liabilities of that legal person.
(5) Paragraph (b) of subsection (4) shall not be construed as limiting the
circumstances in which a limited liability partnership is or may be dissolved,
whether in accordance with the partnership agreement or otherwise.
(6) Notwithstanding subsection (4), each partner in a limited liability part-
nership has, subject to this Act and to the partnership agreement, an interest in
the profits of the limited liability partnership and, in accordance with section
29, in the limited liability partnership property.
(7) Any number of persons may be partners in a limited liability partner-
ship.
(8) Any person may be a partner in a limited liability partnership.
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4.-(1) The property of a limited liability partnership consists of all property:-
(a) brought into the partnership; or
(b) created or acquired by or acquired on account of the partner-
ship either in the course of the partnership business or with
money of the partnership.
(2) Limited liability partnership property: -
(a) shall be vested in the limited liability partnership or held by any
person on its behalf; and
(b) subject to the partnership agreement, and except as provided
in subsection (4) of section 26, shall continue to be so vested
or held notwithstanding any change in the persons who are
partners in the limited liability partnership for the time being.
5.-(1) A limited liability partnership shall be liable for any debt or loss for which,
if the limited liability partnership were an ordinary partnership, the partners would
otherwise be liable; either jointly or jointly and severally.
(2) There shall be available to meet any liability of a limited liability partner-
ship its limited liability partnership property.
6.-(1) Subject to subsections (2) to (4) of this section and subsection (4) of
section 7, a partner or former partner in a limited liability partnership shall not
be liable for any debt or loss to which subsection (1) of section 5 applies,
including any debt of or loss caused by the act of another partner in the partner-
ship.
(2) Subsection (1) above shall not affect any liability of a partner or former
partner in a limited liability partnership for:-
Limited liability
partnership
property.
Liability of a
limited liability
partnership.
Liability of a
partner or
former partner
in a limited
liability partner-
ship.
(a) his personal debts; and
(b) any loss caused by him.
(3) Where any limited liability partnership property, including a share in
the partnership profits, is withdrawn by a partner at a time when the limited
liability partnership is unable to pay its debts, or if the partnership becomes
unable to pay its debts as a result of the withdrawal, such a partner shall be
liable for any debt or loss to which subsection (1) of section 5 applies, but his
liability shall be limited to an amount equal to the value of the withdrawal, less
any amount previously recovered from him by virtue of this subsection or
subsection (4) below.
(4) Where, during the period of six months preceding the time when a
limited liability partnership becomes unable to pay its debts, any limited liabil-
ity partnership property, including a share in the partnership profits, is with-
drawn by a partner other than in the ordinary course of the affairs of the part-
nership, such a partner shall be liable for any debt or loss to which subsection
(1) of subsection 5 applies, but his liability shall be limited to an amount equal
to the value of the withdrawal, less any amount previously recovered from him
by virtue of this subsection or subsection (3) above.
(5) For the purposes of this section, a limited liability partnership is unable
to pay its debts at any time when it is unable to pay its debts which have fallen
due, including any liability to a partner or former partner by way of loan, but
excluding:-
(a) any liability to a partner or former partner in respect of his
partnership interest; and
(b) any debt to the extent that the partnership has bona fide title
grounds on which to dispute it.
(6) In any proceedings, the burden of proving that a limited liability part-
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nership has bona fide grounds on which to dispute a debt to any extent shall
rest with the person denying liability under subsection (3) or (4) above.
(7) This section shall continue to apply to a person who was a partner or
former partner in a limited liability partnership after that partnership’s registra-
tion has been cancelled in accordance with section 31.
7.-(1) A limited liability partnership shall, throughout the relevant period, main-
tain the financial provision described in subsection (2) below.
(2) The financial provision: -
(a) shall require one or more banks or insurance companies, upon
dissolution of the limited liability partnership, to pay to the per-
son responsible for winding-up the affairs of the limited liability
partnership an amount, or an aggregate amount, as the case
may be, which is not less than the specified sum, without set-
off or retention of any kind; and
(b) shall not be assigned, charged or otherwise encumbered by
the limited liability partnership.
(3) No proceedings for enforcement of any judgment or act may be taken
in respect of the financial provision described in subsection (2) above by any
creditor of the limited liability partnership or of any partner in it.
(4) Subject to subsections (5) and (6) below, if a limited liability partner-
ship is dissolved and the payment described in paragraph (a) of subsection (2)
above is not made, the following persons shall be liable to any creditor for
whom the payment described in subsection (2) would have been applied by
virtue of subsection (1) of section 28 as if subsection (1) of section 6 above did
not apply:-
(a) the persons who were partners in the limited liability partner-
Requirement for
and payment of
financial
provision.
ship immediately before its dissolution; and
(b) where subsection (1) above was not complied with at the time
when the debt was incurred or arose or loss caused which
gave rise to the creditor’s claims any person who was a
partner at the time.
(5) For the purposes of subsection (4), the payment described in para-
graph (a) of subsection (2) above shall be deemed to have been made if, upon
dissolution of a limited liability partnership, an amount, or an aggregate amount,
which is not less than the specified sum is paid to the person responsible for
winding-up the affairs of the limited liability partnership from any source with-
out set-off or retention of any kind.
(6) For the purposes of paragraph (b) of subsection (4) above, a failure
to maintain the financial provision described in subsection (2), which is not
attributable to the default of any of the partners and which is remedied within
twenty-eight days after the day on which it arises shall not constitute a failure
to comply with subsection (1) above.
(7) In any proceedings, the burden of proving that the foregoing provi-
sions of this section have been complied with shall rest with the person who
claims the limitation of liability conferred by subsection (1) of section 6 above.
(8) In this section, any reference to the person responsible for winding-up
the affairs of the limited liability partnership means the Attorney General.
(9) In this section:-
“the relevant period” means, in relation to a limited liability partnership, the
period beginning upon its registration date and ending upon (whichever shall
be the earlier of):
(a) the payment described in paragraph (a) of subsection (2) or
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subsection (5) above being made; or
(b) the cancellation of the registration of the limited liability part-
nership in accordance with section 32;
“specified sum” means two hundred and fifty thousand dollars or such other
sum as may be prescribed.
8.-(1) The name of a limited liability partnership shall end with the words “Lim-
ited Liability Partnership”.
(2) Notwithstanding subsection (1) above, a limited liability partnership
may use the abbreviation “LLP” or L.L.P.” in place of the words “Limited
Liability Partnership”.
(3) A change of name of a limited liability partnership shall not take effect
before a certificate in respect of it is issued by the Registrar pursuant to subsec-
tion (3) of section 18 below.
(4) Where the name to be registered in respect of a limited liability partner-
ship is in the opinion of the Registrar, in anyway misleading or otherwise unde-
sirable, he may: -
(a) where the name is stated in a declaration delivered pursuant to
section 17 below, refuse to Register the limited liability part-
nership; and
(b) where the name is specified in a statement delivered pursuant
to subsection (1) of section 18 below, refuse to register the
name and refuse to issue a certificate in respect of its pursuant
to subsection (3) of that section.
(5) A change of name of a limited liability partnership does not affect any
rights or obligations of the limited liability partnership or render defective any
Name of a
limited liability
partnership.
legal proceedings by or against it and any legal proceedings that might have
been continued or commenced against it under its former name may be con-
tinued or commenced against it under its new name.
(6) Where a limited liability partnership, which has its name inscribed in
the Registry as being the holder of, or having an interest in, immovable prop-
erty, changes its name, the designated partner shall deliver to the Registrar a
copy of the certificate issued by the Registrar pursuant to subsection (3) of
section 18 below within fourteen days after its issue.
(7) Upon delivery to him of the copy of the certificate referred to in sub-
section (6), the Registrar shall cause the new name of the limited liability part-
nership to be registered in the Registry.
(8) If default is made in compliance with subsection (6) above, the desig-
nated partner commits an offence.
(9) A limited liability partnership shall have its name, the number assigned
(if any) to it by the Registrar on registration and the words “registered as a
limited liability partnership in Belize” clearly stated on all its correspondence,
invoices, statements and other public documents.
9.-(1) A limited liability partnership shall have a registered office in
Belize.
(2) A change of the address of the registered office of limited liability
partnership shall not take effect before the delivery to the Registrar of a state-
ment in respect of it pursuant to subsection (1) of section 18.
(3) Where the change of address of a limited liability partnership takes
effect before the expiry of the period of fourteen days beginning on the day on
which the statement in respect of it is delivered to the Registrar, a person may
validly serve any document on the partnership or on any of its partners, within
that period, at the limited liability partnerships’s previous registered office.
Registered office.
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(4) A limited liability partnership shall keep at its registered office:-
(a) a list showing in alphabetical order the name and address of
each partner and indicating which of them is a designated part-
ner;
(b) a copy of the declaration;
(c) a copy of the most recent annual declaration;
(d) a copy of any statement delivered to the Registrar under this
Act;
(e) a copy of any certificate issued by the Registrar under this Act;
and
(f) if the partnership agreement has been reduced to writing,
a copy of the agreement and any amendment made thereto.
(5) The records kept under subsection (4) above shall be:-
(a) prima facie evidence of the particulars which are by that sub-
section directed to be contained in them; and
(b) available for inspection and copying without charge during or-
dinary business hours at the request of a partner.
(6) The list kept under paragraph (a) of subsection (4) shall be
amended within twenty-eight days after any change in the particulars con-
tained in it.
(7) If default is made in compliance with this section, the designated part-
ner commits an offence.
10.-(1) A limited liability partnership shall keep for five years accounting records
which are sufficient to show and explain its transactions and are such as to
disclose with reasonable accuracy at any time its financial position.
(2) Subject to the partnership agreement, it shall not be necessary for a
limited liability partnership to appoint an auditor or have its accounts audited.
(3) If default is made in compliance with subsection (1), the designated
partner commits an offence and is liable to a fine of up to a maximum amount
of fifty thousand dollars or up to two years imprisonment, or to both a fine and
term of imprisonment.
11.-(1) A limited liability partnership shall take reasonable precautions:-
(a) to prevent loss or destruction of,
(b) to prevent falsification of entries in; and
(c) to facilitate detection and correction of inaccuracies in,
the records it is required to keep in accordance with subsection (4) of section
9 above and subsection (1) of section 10 above.
(2) The records referred to in subsection (1) may be kept in the form of
a bound or loose-leaf book, or photographic film, or may be entered or re-
corded by a system of mechanical or electronic data processing or any other
information storage device that is capable of reproducing any required infor-
mation in intelligible written form within a reasonable time.
(3) If default is made in compliance with subsection (1) above, the desig-
nated partner commits an offence and is liable to a fine of up to a maximum
amount of fifty thousand dollars or up to two years imprisonment, or to both a
fine and imprisonment.
Accounts and
audit.
Keeping and form
of limited liability
partnership
records.
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PART III
Relationship of Partners with one another and Third Parties
12.-(1) Subject to Part I and V, the rights and duties of the partners in a limited
liability partnership shall, as between themselves, be determined by the part-
nership agreement.
(2) Nothing in the partnership agreement may deprive the partners of the
benefit of subsection (1) of section 6 above.
(3) Subject to subsection (2) above shall not be construed as limiting the
ability of the partners in a limited liability partnership, as between themselves, to
indemnify any of them or any former partner in respect of any debt or loss.
13. A partner in a limited liability partnership may enter into any transaction
with partnership, including lending money to and borrowing money from it.
14.-(1) An additional partner shall not be admitted to a limited liability partner-
ship except in accordance with the partnership agreement.
(2) Except as described in subsection (1) of section 25, a partner may only
retire from a limited liability partnership in accordance with the partnership agree-
ment.
(3) No retirement shall have effect before a statement is delivered to the
Registrar specifying the change pursuant to subsection (1) of section 18 or
subsection (2) of section 25, as the case may be.
15.-(1) A partner in a limited liability partnership may not assign the whole or
part of his partnership interest, except by way of charge.
(2) Notwithstanding subsection (1) above, changes may be made in the
Relationship of
partners to one
another.
Dealings of
partners with
limited liability
partnership.
Admission and
retirement of
partners.
Assignments,
etc.
partnership interests in a limited liability partnership on the admission or retire-
ment of a partner, on the death of a partner who is an individual, on a partner
who is not an individual ceasing to exist, or in accordance with the partnership
agreement.
(3) Subject to the partnership agreement, a partnership in a limited liabil-
ity partnership may create a charge over his partnership interest.
16.-(1) Every partnership in a limited liability partnership is the agent of that
partnership and accordingly, but subject to subsection (2), the acts of a part-
ner in his capacity as a partner shall bind the limited liability partnership.
(2) The acts of a partner in a limited liability partnership shall not bind the
partnership where the partner is not acting as a partner or is acting without
authority and the person with whom the partner is dealing knows or should
know that to be the position.
(3) A partner shall act without authority unless he acts:-
(a) in the ordinary course of the business of the limited liability
partnership; or
(b) with the express authority conferred by or pursuant to the
partnership agreement.
(4) For the purposes of subsection (2), no person shall be deemed to
have notice of any records by reason only that they are made available by the
Registrar for inspection.
Agency of
partners in a
limited liability
partnership.
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PART IV
Registration of a Limited Liability Partnership
17.-(1) An application for registration as a limited liability partnership may be
made by persons to whom subsection (2) of section 3 applies.
(2) An application shall be in the form of a declaration, signed by any per-
son who is, on registration, to be the designated partner, delivered to the Reg-
istrar.
(3) The declaration shall state.
(a) that the person (s) on whose behalf the application is made is a
person to whom subsection (2) of section 34 applies;
(b) the proposed name of the limited liability partnership, such name
to comply with subsection (1) of section 8;
(c) the intended address of the registered office of the limited li-
ability partnership;
(d) the name and address of each person who is to be a partner in
the limited liability partnership, and specifying which of them is
to be the designated partner;
(e) the date on which it is proposed that registration of the limited
liability partnership should take effect;
(f) the term, if any, for which the limited liability partnership is to
exist or, if for unlimited duration, a statement to that effect; and
(g) such other information as may be prescribed by Regulations.
Registration of
a limited
liability
partnership.
(4) The declaration shall be accompanied by which documents as may be
prescribe by Regulations.
(5) Subject to subsection (4) of section 8, upon receipt of an application
complying with subsection (2) to (4), the Registrar shall register the limited
liability partnership and issue a certificate specifying the date on which regis-
tration of the limited liability partnership takes effect, being a date not earlier
than the date on which the certificate of registration is issued.
18.-(1) Subject to subsection (2) below, within twenty-eight days after any
change in the information stated in the declaration, there shall be delivered to
the Registrar a statement signed by the designated partner specifying the na-
ture of the change.
(2) No statement is required to be delivered under subsection (1) in re-
spect of the retirement of a partner, which is specified in a statement delivered
pursuant to subsection (2) of section 25.
(3) Subject to subsection (4) of this section and to subsection (4) of sec-
tion 8 above, upon delivery of a statement pursuant to subsection Registrar
(1) above, the Registrar shall register the change specified in it and issue a
certificate to that effect.
(4) A statement delivered to the Registrar specifying the admission of an
additional partner to the limited liability partnership shall be deemed to be
delivered to the Registrar on the day on which the partner is so admitted,
whether before or after the day on which the statement is delivered.
(5) If default is made in compliance with subsection (1) above, the desig-
nated partner shall be guilty of an offence.
19.-(1) Subject to subsection (2) below, before the end of February in every
year following the year in which a limited liability partnership is registered, the
designated partner shall deliver an annual declaration signed by him to the
Amendment of
declaration.
Annual declara-
tion.
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No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Limited Liability Partnerships [CAP. 258
[ ]
25
Registrar stating the name and address of every person who, on the first day of
January in that year, was a partner in the partnership.
(2) If default is made in compliance with paragraph (1), the designated
partner commits an offence.
20.-(1) No error in the declaration delivered to the Registrar pursuant to sec-
tion 17, the annual declaration delivered pursuant to section 19 or any state-
ment delivered to the Registrar pursuant to this Act, nor any default in the
delivery of any such annual declaration, statement or copy required to be deliv-
ered to the Registrar under this Act, shall affect the validity of the registration of
a limited liability partnership.
(2) A certificate issued under subsection (5) of section 17 shall be conclu-
sive evidence as to the registration of a limited liability partnership.
PART V
Dissolution and Winding-Up, etc.
21. Subject to section 22, a limited liability partnership shall not be dis-
solved by any change in the persons who are partners in it if the partnership
agreement so stipulates.
22.-(1) Notwithstanding any provision, express or implied in the partnership
agreement to the contrary, a limited liability partnership shall be dissolved upon
there ceasing to be two or more partners in the partnership.
(2) Where the person responsible for winding-up the affairs of the limited
liability partnership is the person who, at the time of dissolution, was the last
remaining partner he shall, within twenty-eight days after the dissolution, deliver
a statement of dissolution signed by him to the Registrar.
Validity and
proof of
registration.
No dissolution
upon a change
in the partners
of a limited
liability partner-
ship.
Dissolution
upon partner-
ship ceasing to
have two or
more partners.
(3) Where the person responsible for winding-up the affairs of the limited
liability partnership is not the person described in subsection (2) above, he
shall, within twenty-eight days after the day on which he becomes the person
so responsible, deliver a statement of dissolution signed by him to the Regis-
trar.
(4) Upon delivery to him of a statement under subsection (2) or (3), the
Registrar shall register the statement and issue a certificate of dissolution.
(5) If default is made in compliance with subsection (2) above, the person
described in that subsection commits an offence.
(6) If default is made in compliance with subsection (3) above, the person
responsible for winding-up the affairs of the partnership commits an offence.
23.-(1) Where a limited liability partnership is dissolved by any Act of a part-
ner or by any other occurrence, other than that described in subsection (1) of
subsection 22 above, the designated partner shall, within twenty-eight days
after the dissolution, deliver to the Registrar a statement of dissolution signed
by him.
(2) Upon delivery to him of a statement under subsection (1), the Regis-
trar shall register the statement and issue a certificate of dissolution of the
partnership.
(3) If default is made in compliance with subsection (1) above, the desig-
nated partner commits an offence.
24.-(1) The Court may, on the application of any partner in a limited liability
partnership, order the dissolution of the partnership in any of the following
cases:
(a) when a partner, other than the partner making the application,
becomes in any way permanently incapable of performing his
Dissolution by act
of partner or other
occurrence.
Power of Court to
order dissolution.
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No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Limited Liability Partnerships [CAP. 258
[ ]
27
part of the partnership agreement;
(b) when a partner, other than the partner making the application
has been guilty of such conduct as, in the opinion of the Court,
regard being had to the nature of the business, is calculated to
prejudicially affect the carrying on of the business;
(c) when a partner, other than the partner making the application,
willfully or persistently commits a breach of the partnership
agreement, or otherwise so conducts himself in matters relating
to the partnership business that it is not reasonably practicable
for the other partner or partners to carry on the partnership
business in partnership with him;
(d) when the business of the partnership can only be carried on at
a loss; or
(e) whenever circumstances arise which, in the opinion of the Court,
render it just and equitable that the partnership be dissolved.
(2) Where the Court orders the dissolution of a limited Liability partner-
ship, the partner making the application for dissolution shall deliver a copy of
the order to the Registrar within twenty-eight days after it is made.
(3) A failure to comply with subsection (2) above shall be an offence.
25.-(1) Where, following dissolution of a limited liability partners but before
completion of the winding-up of its affairs, two or more of the partners of the
limited liability partnership are to acquire the partnership interests of each of the
remaining partners, either by agreement or upon a direction of the Court pursu-
ant to subsection (2) of section 27:-
(a) the affairs of the limited liability partnership shall not be wound-
up and the partnership shall continue as if it had not been dis-
Continuation of
partnership
following
dissolution.
solved; and
(b) subject to subsection (3) of section 14 above, upon the ac-
quisition taking place, the partners whose interests are intended
to be acquired shall be deemed to have retired from the part-
nership.
(2) One of the acquiring partners shall, within twenty-eight days after the
agreement or direction described in subsection (1) above, deliver to the Reg-
istrar a statement of cessation or dissolution of partnership signed by him speci-
fying:-
(a) the date for the acquisition of the retiring partners’ interests;
(b) the names of the acquiring partners, indicating which of them
is to become a designated partner; and
(c) the names of the retiring partners.
(3) Upon delivery to him of a statement made pursuant to subsection (2)
above, the Registrar shall register the statement and issue a certificate to that
effect.
(4) With effect from the issue of the certificate described in subsection (3)
above, section 6 shall apply as if the limited liability partnership had not been
dissolved.
(5) If default is made in compliance with subsection (2) above, each of
the acquiring partners commits an offence.
26.-(1) Subject to subsection (2) of section 25-
(a) in the event of the dissolution of a limited liability partnership
in the circumstances described in subsection (1) of section
Winding-up.
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Belmopan, by the authority of
the Government of Belize.
Limited Liability Partnerships [CAP. 258
[ ]
29
27, its affairs shall be wound-up by the person who, at the
time of dissolution, was the last remaing partner or, if the
partner is deceased, his personal representatives; and
(b) in the event of the dissolution of a limited liability partnership in
any other circumstances, its affairs shall be wound-up by a
person appointed by the partners for that purpose or, if no
such person has been appointed, by the designated partner.
(2) The Court may appoint a person to wind-up the affairs of a limited
liability partnership upon the application of.-
(a) a partner of the limited liability partnership;
(b) a creditor of the limited liability partnership; or
(c) where the limited liability partnership is dissolved on the death
of a partner, the personal representatives of the deceased part-
ner.
(3) After the dissolution of a limited liability partnership, subsections (2) to
(4) of section 16 above shall only continue to apply so far as may be necessary
or desirable to achieve a beneficial winding-up of its affairs or to such lesser
extent as the partnership agreement may provide.
(4) Upon the dissolution of a limited liability partnership in the circumstances
described in subsection (1) of section 22 above, or upon the limited liability
partnership ceasing to have two or more partners at any time during the wind-
ing-up of its affairs following its dissolution in any other circumstances:-
(a) the Limited liability partnership shall cease to be a legal person;
(b) the limited liability partnership property vested in the limited
liability partnership and the beneficial interest of the limited li-
ability partnership in any limited liability partnership property
held by any person on its behalf, shall vest in the person re-
sponsible for winding-up the affairs of the limited liability part-
nership;
(c) any proceedings which might have been continued or com-
menced against the limited liability partnership may be contin
ued or commenced against the person responsible for wind-
ing-up the affairs of the limited liability partnership in his ca-
pacity as such; and
(d) any judgment obtained against the limited liability partnership
prior to its ceasing to have two or more partners and any
judgment obtained against the person responsible for wind-
ing-up the affairs of the partnership in his capacity as such in
any proceedings continued or commenced in accordance with
paragraph (c) above shall only be enforceable against the lim-
ited liability partnership property.
(5) Where the name of a limited liability partnership is inscribed in the
Registry as the holder of, or having an interest in, immovable property, the
person responsible for winding-up the affairs of the limited liability partner-
ship, in whom that property or interest vests by virtue of paragraph (b) of
subsection (4), shall deliver to the Registrar notice of the name of the person
responsible for winding-up the affairs of the limited liability partnership and in
whom the property has vested, within twenty-eight days after the property so
vests.
(6) If default is made in compliance with subsection (5), the person re-
sponsible for winding-up the affairs of the limited liability partnership commits
an offence.
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No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Limited Liability Partnerships [CAP. 258
[ ]
31
27.-(1) The Court may give such directions as it thinks fit in the course of the
winding-up of the affairs of a limited liability partnership upon the application
of:-
(a) any partner in the limited liability partnership;
(b) any creditor of the limited liability partnership;
(c) the person responsible for winding-up the affairs of the limited
liability partnership; or
(d) where the limited liability partnership is dissolved upon the death
of a partner, the personal representatives of the deceased partner.
(2) Without prejudice to the discretion conferred by subsection (1), on an
application by the relevant majority of the partners of a limited liability partner-
ship, the Court may give a direction that the applicants purchase the partnership
interest of each of the remaining partners at such a price and otherwise upon
such terms as the Court thinks fit.
(3) ln subsection (2) above, “relevant majority” in relation to a limited li-
ability partnership shall have the meaning assigned to it for the purposes of that
subsection by the partnership agreement or, if no meaning is so assigned, shall
mean a majority of the partners of which such partnership was composed at the
date of its dissolution, being either:-
(a) a majority of the partners by number; or
(b) such number of partners as were at the date of dissolution to-
gether entitled to a majority of the profits of the partnership.
(4) In subsection (2) above, the reference to the partnership interest of
each of the remaining partners includes the partnership interest of any deceased
partner and of any partner other than an individual, which ceases to exist.
Power of Court
to give direc-
tions as to
winding-up.
28.-(1) Notwithstanding section 29 or any other enactment or law to the con-
trary, the person responsible for winding-up the affairs of a limited liability
partnership shall apply any payment made pursuant to subsection (2) or (5) of
section 7 in the payment of creditors to whom the limited liability partnership is
liable by virtue of subsection (1) of section 5, excluding any partner or former
partner in the limited liability partnership in respect of his partnership interest
or in respect of any loan made by him to the partnership for any purpose.
(2) A failure to comply with subsection (1) above shall be actionable at
the suit of a creditor of the limited liability partnership who suffers loss as a
result of such failure, subject to the defences and other incidents applicable to
actions for rbreach of statutory duty.
(3) Any monies remaining after payment of the creditors as described in
subsection (1) above shall be distributed in accordance with section 29 be-
low.
29.-(1) Where the accounts are settled in the course of the winding-up of the
affairs of a limited liability partnership, the liabilities of the partnership shall be
paid in the following order of priority:-
(a) liabilities to creditors, excluding any partner or former-ner
partner in the limited liability partnership in respect of their
partnership interest or in respect of any loan made by them to
the partnership for any purpose; then
(b) subject to the partnership agreement and to any agreement
between the limited liability partnership and a former partner:-
(i) liabilities to former partners in the limited liability part-
nership in respect of any loans made by them to the
partnership for any purpose; then
(ii) liabilities to former partners in the limited liability part-
Application of
financial provi-
sions.
Setting accounts
on winding-up.
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No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Limited Liability Partnerships [CAP. 258
[ ]
33
nership in respect of their partnership interests or oth-
erwise; then
(c) subject to the partnership agreement:-
(i) liabilities to partners in the limited liability partnership in
respect of any loans made by them to the partnership
for any purpose; then
(ii) liabilities to partners in the limited liability partnership in
respect of their partnership interests or otherwise.
(2) Subject to the partnership agreement, any limited liability partnership
property remaining after payment of the liabilities described in subsection (1)
above, shall be distributed equally among the partners.
30.-(1) Within twenty-eight days after the completion of the winding-up of the
affairs of a limited liability partnership, a statement to that effect signed by the
person responsible for winding-up the affairs of the limited liability partnership
shall be delivered to the Registrar.
(2) If default is made in compliance with subsection (1) above, the person
responsible for winding-up the affairs of the limited liability partnership commits
an offence.
31.-(1) Upon receipt of a statement delivered to him pursuant to section 30
above, the Registrar shall cancel the entry in the register relating to the limited
liability partnership and issue a certificate of cancellation to the person deliver-
ing the statement to him or notifying him, as the case may be.
(2) A certificate issued under subsection (1) above shall be conclusive evi-
dence as to the cancellation of the registration of a limited liability partnership.
Completion of
winding-up.
Cancellation of
registration
following
winding-up, etc.
PART VI
Miscellaneous and General
32.-(1) This section shall apply whenever an order is made by a court outside
of Belize for the dissolution or winding-up of the affairs of a limited liability
partnership, and references in this section to such an order shall be construed
accordingly.
(2) For the purposes of this Act, limited liability partnership shall not be
taken to be dissolved by an order (pursuant to subsection (1) above), until
that order has been recognised by the Court, but, once an order has been
recognised by the Court, it shall be taken to be an order for the dissolution and
winding-up of the affairs of the limited liability partnership.
(3) An application to the Court for recognition of an order pursuant to
subsection (1) above, may be made by the person appointed under it to wind-
up the affairs of the limited liability partnership or, if none, the person on whose
behalf the application for the order was made.
(4) In determining whether or not to recognise an order, the Court shall
have regard to:-
(a) whether the grounds on which it is made would constitute
grounds for dissolution in Belize; and
(b) the arrangements made for compliance with section 28.
(5) Where the Court decides to recognise an order, it may also appoint a
person to be responsible for winding-up the affairs of the limited liability part-
nership and give such directions as it thinks fit.
(6) Where the Court decides to recognise an order for the dissolution or
Recognition of
proceedings in
other jurisdiction.
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No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Limited Liability Partnerships [CAP. 258
[ ]
35
winding- up of a limited liability partnership, the designated partner shall deliver
a copy of such a decision to the Registrar within twenty-eight days after it is
made.
(7) Upon delivery to him of a copy of the decision referred to in subsection
(6), the Registrar shall register it and issue a certificate to that effect.
(8) If default is made in compliance with subsection (6), the designated
partner commits an offence.
33.-(1) Except as provided in paragraph (c) of subsection (4) of section 26,
legal proceedings by or against a limited liability partnership shall be instituted
by or against the limited liability partnership and any judgment shall be made in
such proceedings in favour of or against the limited liability partnership only in
the partnership’s name.
(2) Subject to subsection (3) of this section and except as provided in
paragraph (d) of subsection (4) of section 26, no judgment shall be enforced
against any limited liability partnership property unless such judgment has been
granted against the limited liability partnership.
(3) Subsection (1) above shall not affect any right of a judgment creditor or
a partner in a limited liability partnership to enforcement against that partner’s
partnership’s interest and any sum due to such a partner from the partnership
by way of repayment of a loan.
(4) Where a judgment creditor of a partner in a limited liability partnership
has a right of enforcement against any of the partner’s assets as described in
subsection (3), the other partner or partners of the limited liability partnership
may prevent or stop enforcement against those assets by paying to the creditor
whichever is the lesser of the amount for which enforcement is sought and an
amount equal to the value of the first mentioned partner’s partnership interest,
and any sum which may be due to him from the partnership by way of repay-
Legal proceed-
ings.
ment of a loan.
(5) The enforcement of a judgment obtained against a limited liability part-
nership pursuant to subsection (1) by way of execution, or against the person
responsible for winding-up the affairs of the limited liability partnership pursu-
ant to paragraph (d) of subsection (4) of section 26 shall only be capable of
being issued against and satisfied out of the property of the limited liability
partnership as at the date of such execution (no account being taken of any
changes in the partners composing the limited liability partnership prior to such
date).
(6) Any person may join or otherwise institute proceedings against:-
(a) one or more of the partners and any former partner of a lim-
ited liability partnership who is liable by virtue of subsections
(3) and (4) of section 6; and
(b) any person holding limited liability partnership property on
behalf of a limited liability partnership for the purposes of en
forcement against such property.
34. For the purposes of this Act:-
(a) service of a document on a limited liability partnership may be
effected by sending it by postor delivering it to the registered
office of the limited liability partnership; and
(b) service of a document on a partner in his capacity as such
may be effected by sending it by post or delivering it to him at
the registered office of the limited liability partnership or at the
address for service stated for him in the declaration.
35.-(1) Where a person who is required by this Act to sign, deliver or permit
inspection or copying of any document fails to do so, any person who is ag-
Service of docu-
ments.
Order for compli-
ance.
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No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Limited Liability Partnerships [CAP. 258
[ ]
37
grieved by any such failure may apply to the Court for an order directing that
person to comply with the Act, and upon such application the Court may make
such order as it considers appropriate in the circumstances.
(2) An application may be made by the applicant under subsection (1)
notwithstanding the imposition of any penalty in respect of the failure and in
addition to any rights the applicant may have at law.
36.-(1) The Registrar of limited liability partnerships shall be appointed by the
Minister.
(2) The Registrar shall maintain a register of limited liability partnerships
and record in it any declaration, statement or copy delivered to him and the
issue of any certificate by him pursuant to this Act.
(3) Any certificate issued by the Registrar under this Act shall be signed by
him and sealed with his seal (if any).
(4) The Minister may direct a seal or seals to be prepared for the authen-
tication of documents required for or in connection with the registration of lim-
ited liability partnerships.
(5) Any functions of the Registrar under this Act may, to the extent authorised
by him, be exercised by the Deputy Registrar.
37.-(1) The Minister may by Order require the payment to the Registrar of
such fees as may be prescribed in respect of.-
(a) the performance by the Registrar of such functions under this
Act as may be prescribed, including the receipt by him of any
document which is required to be delivered to him under this
Act; and
(b) the inspection or copying of documents or other material held
Appointment
and functions
of Registrar.
Fees and forms.
by him under this Act.
(2) The Registrar may charge a fee for any services provided by him oth-
erwise than in pursuance of an obligation imposed on him by this Act.
(3) Where a fee is provided for or charged under this section for the
discharge of any function or the provision of any service by the Registrar, no
action need be taken by the Registrar until the fee is paid, and where the fee is
payable on the receipt by him of a document required to be delivered to him,
he shall be deemed not to have received it until the fee is paid.
(4) The Minister may prescribe forms to be used for any of the purposes
of this Act and the manner in which any document to be delivered to the
Registrar is to be authenticated.
38.-(1) Any person may:-
(a) inspect any document delivered to and kept by the Registrar
pursuant to this Act or, if the Registrar thinks fit, a copy of it;
and
(b) obtain a copy of any certificate issued by the Registrar under
this Act and of all or part of any document referred to in para-
graph (a).
(2) A copy of any document kept by the Registrar or of any certificate
issued by him which is certified in writing by him (whose position it is unneces-
sary to prove) to be an accurate copy of such document or certificate shall in
all legal proceedings be admissible in evidence as of equal validity with the
original and as evidence of any fact stated in it of which direct oral evidence
would be admissible.
39.-(1) The Registrar may destroy any record or document relating to a lim-
ited liability partnership which has been in his possession or under his control
Inspection and
production of
documents kept
by the Registrar.
Destruction of old
records, etc.
,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Limited Liability Partnerships [CAP. 258
[ ]
39
for more than five years.
(2) Where any record or document has been in the possession of the Reg-
istrar or under his control for more than five years, no responsibility shall rest
with any person in respect of that record or document not being forthcoming to
any person claiming to be interested in it.
40. The Attorney General shall register in the Registry all acts and orders
made under this Act affecting immovable property.
41.-(1) Any person who makes a statement in any document, material, evi-
dence or information which is required to be delivered to the Registrar under
this Act which, at the time and in the light of the circumstances under which it
was made, is false or misleading with respect to any material fact, or which
omits to state any material fact the omission of which makes the statement false
or misleading, commits an offence and is liable on conviction to a fine of up to
a maximum amount of fifty thousand dollars or up to two years imprisonment,
or to both fine and imprisonment.
(2) A person does not commits an offence under subsection (1) if he did
not know that the statement was false or misleading and with the exercise of
reasonable diligence could not have known that the statement was false or
misleading.
(3) Any person who wilfully takes or uses any name, title, addition or de-
scription falsely, implying that they are partners in a limited liability partnership
or implying that they are partners in a partnership which is not a limited liability
partnership, shall each commit an offence and shall be liable to a fine of up to a
maximum amount of fifty thousand or up to two years imprisonment, or to both
a fine and imprisonment.
(4) Where an offence under this Act is committed by a body corporate
and is proved to have been committed with the consent or connivance of, or to
be attributable to any neglect on the part of any director, manager, secretary, or
Registration in
the Registry.
Offences.
other similar officer of the body corporate, or any person purporting to act in
any such capacity, he, as well as the body corporate, shall also commit the
same offence and be liable in the same manner to the penalty provided for that
offence.
42. Any person who knowingly or wilfully aids, abets, counsels, causes,
procures or commands the commission of an offence punishable by this Act
shall be liable to be dealt with and tried and punished as a principal offender.
43. Any person guilty of an offence under-
(a) subsection (8) of section 8;
(b) subsection (7) of section 9;
(c) subsection (5) of section 18;
(d) subsection (5) or (6) of section 22;
(e) subsection (3) of section 23;
(f) subsection (3) of section 24;
(g) subsection (5) of section 25;
(h) subsection (6) of section 26;
(i) subsection (2) of section 30; or
(j) subsection (8) of section 32,
shall be liable to a fine of fifty dollars for each day or part thereof during which
the contravention continues.
Aiders and
abettors.
Penalty for
offences.
,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Limited Liability Partnerships [CAP. 258
[ ]
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44.-(1) The Minister may make Regulations modifying all or any of subsections
(3) to (6) of section 6 and the provisions of Part VII their application to insol-
vent limited liability partnerships.
(2) Regulations made under section (1) may:-
(a) make different provision for different cases and contain such
incidental, supplemental and transitional provisions as appear
to the Minister to be necessary or expedient; and
(b) make a contravention of any of the provisions of the Regula-
tions as an offence liable to a fine not exceeding the sum of
fifty thousand dollars or up to two years imprisonment, or to
both a fine and imprisonment.
45.-(1) The Minister may by Regulations amend, substitute or repeal section 7.
(2) Regulations made under subsection (1) may make different provisions
for different cases and contain such incidental, supplemental and transitional
provisions as appear to the Minister to be necessary or expedient.
46.-(1) The Minister may by Order make provision for the purpose of carrying
this Act into effect and in particular, but without prejudice to the generality of
the foregoing, for prescribing any matter which is to be prescribed under this
Act.
(2) Any provision of an Order prescribing any matter for the purposes of
section 7 shall not come into force until a period of not less than three months
has elapsed from the day on which the Order is made.
(3) An Order made under this Act may make different provisions for dif-
ferent cases and contain such incidental, supplemental and transitional provi-
sions as appear to the Minister to be necessary or expedient.
Regulations
relating to
insolvent
limited liability
partnership.
Regulations to
amend section 7.
Orders.
47. The rules of customary law applicable to a partnership shall apply to a
limited liability partnership except in so far as they are inconsistent with the
provisions of this Act.
48.-(1) This Act shall come into force on a day to be appointed by the Minis-
ter by Order published in the Gazette.
(2) The Minister may appoint different dates for different provisions of
this Act to come into force.
______________
Customary Law.
Commencement.
