How to distinguish gp from lp
1. On the one hand, the general partner needs to be responsible for the business performance of the enterprise, and the limited partner is only the investor of the partnership enterprise and does not need to undertake the main management. Therefore, in the profit distribution of the company, the general partner will get one more business performance award than the limited partner;
2. On the other hand, if the partnership agreement does not explicitly prohibit competitors from engaging in business competition, the limited partner may engage in business competition with the partnership. As for the general partner, whether there is an agreement or not, in China's partnership enterprise law, it is directly forbidden for the general partner to compete with the cooperative operating company in the same industry.
Specific differences between general partners and limited partners in equity financing
1. Different transaction levels: unless the contract can be approved by all partners, the general partner and the partnership enterprise cannot trade, but the limited partner can;
2. The degree of competition is different: in commercial competition, limited partners can compete with partnership enterprises. When the partnership agreement prohibits commercial competition, it cannot compete with the partnership enterprise, while the general partner is directly required by laws and regulations to prohibit commercial competition;
3. The mortgage and transfer of asset market share are different: the general partner may not pledge or transfer the asset market share without the unanimous consent of other partners, while the limited partner may directly pledge or transfer the individual's assets in the partnership according to the regulations;
4. Different levels of capital injection: General partners can use all kinds of legal property or personal services to inject capital, while limited partners cannot.
The above is the difference between a general partner and a limited partner. Another difference between the two is the different responsibilities. Limited partners are only responsible for the amount subscribed. This article mainly talks about what gp and lp mean, and the content is for reference only.
Legal basis:
The Partnership Enterprise Law stipulates that if a general partner pledges his share of property in the partnership enterprise, it must be unanimously agreed by other partners; Without the unanimous consent of other partners, the behavior is invalid and causes losses to a bona fide third party, and the actor shall be liable for compensation according to law. A limited partner may pledge his share of property in a limited partnership.
References:
Baidu Encyclopedia -GP (General Partner) Baidu Encyclopedia-Limited Partner