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If we take the number of corporations, 186,933, compared to the number of limited partnerships, we will see that the volume of companies corresponds to about 3% of the number of limited partnerships. But this is easily explained: forming limited partnerships is a national vice: a bad habit of lawyers, businessmen and accountants. There are frightening conceptual distortions. Taken from a sociological and economic perspective – that is: considering what actually happens in corporations – the overwhelming majority of Brazilian limited companies operate as partnerships in the general name, living according to the parameters designed for this type, only benefiting from article 1,052 of the Civil Code, that is, the limit of liability of partners to the value of the shares they subscribed.

Limited partnerships abroad

France has a significant number of large corporations that are sms gateway brunei structured as limited partnerships by shares. For example, Michelin (Manufacture Francaise des Pneumatiques Michelin) and Euro Disney SCA . One of the reasons is that European legislation establishes a minimum investment amount (share capital) for each type of company and, in this case, it is necessary to invest less to set up a limited partnership by shares than a public limited company.

But there is another reason. In France, the general partner cannot be removed from the management of the limited partnership by the limited partners. In other words, not only is a distinction made between investor(s) and manager(s), not only is the personal assets of non-manager shareholders (who have no subsidiary liability for unfulfilled corporate obligations) preserved, but stability is also guaranteed in favor of the shareholder(s) who, by exposing their personal assets, manage the corporation. As a result of this provision, the corporate management is protected from hostile takeovers: no matter how many shares are acquired on the market, the management of the business will not be assumed, unless the general shareholder(s) agrees. Thus, many companies are organized as limited partnerships by shares.