Second, the participation status is different. Fund GP is responsible for fund operation, while fund LP is not involved in fund operation.
Third, the income is different. The fund GP bears unlimited responsibility for extracting 20% of the income, and the fund LP bears limited responsibility for extracting 80% of the income.
Benefit.
Fourth, the scope of the main forms is different. The main form of fund GP is narrow, while the main form of fund LP is broad.
5. Different definitions. The fund GP refers to the general partner and the fund LP refers to the limited partner.
According to Article 3 of the Partnership Enterprise Law of People's Republic of China (PRC): wholly state-owned companies, state-owned enterprises, listed companies and public companies.
Public welfare organizations and social organizations shall not become general partners.
Because our country's laws prohibit it, the main form of fund GP is narrow. But the main form of fund LP can be investment.
Foreign-funded enterprises or financial and insurance institutions and individual investors.
According to Article 2 of the Partnership Enterprise Law of People's Republic of China (PRC), a limited partnership enterprise consists of a general partner and a limited partner.
Cheng, the general partner shall bear unlimited joint and several liability for the debts of the partnership, and the limited partner shall be limited to the amount of capital subscribed.
Take responsibility for the company's debts.
When the fund GP is a natural person, unlimited joint liability risk cannot be avoided.
The content of this article comes from: The New Encyclopedia of Financial Law (Fifth Edition) edited by China Law Publishing House.