On Defects of and Improvement for Partnership System in China

The Partnership Enterprise Law,revised in 2006,is the first of its kind to establish the system of limited partnership in China.With its unique charm unshared by general partnership or companies,limited partnership has made up for the deficiency of corporate system and partnership system,thus having enriched the forms of organization for China's enterprises and been conducive to ensuring free competition among market subjects from various organizations.Without organizations like the board of share-holders,of directors,and of supervisors in companies,limited partnership is simple in organizational structure,thus its decision-making process is simple and flexible while its operation and management is relatively centralized,elastic,efficient,and easy to adapt to the ever-changing market and to the need of high-tech industrial development.However,as a newly established system in our country,limited partnership still leaves much to be desired,namely,restrictions on the number of partners,defects in the funding system,demerits in the shift system between limited partners and general partners,and defects of the liability system for limited partners.As such,some proposals are advanced in this paper for improving the legislation of the limited partnership system in our country.