Malaysia legislation
Section 17
of LABUAN LIMITED PARTNERSHIPS AND LIMITED LIABILITY PARTNERSHIPS ACT 2010
Section 17
(2)
For a period of six months from the date of receipt by a limited partner of any payment representing a return of contribution or part thereof received by such limited partner in circumstances where the requirements of subsection (1) have not been met, such payment shall be repayable by such limited partner with interest at the prescribed rate to the extent that such contribution or part thereof is necessary to discharge a debt or obligation of the Labuan limited partnership incurred during the period that the contribution represented an asset of the Labuan limited partnership.
Labuan Limited Partnerships and Limited
Liability Partnerships 25
(3)
Notwithstanding the provision of this section, a limited partner shall not be liable to repay any payment representing a return of his contribution or part thereof, except—
(a)
as provided in subsection (2); or
(b)
in the case of fraud.
(4)
Subject to subsections (1) and (2), a limited partner may demand payment representing the return of all or part of his contribution—
(a)
on the dissolution of the Labuan limited partnership;
(b)
at the time specified in the partnership agreement for its return; or
(c)
after he has given six months’ notice in writing to all other partners if no time is specified in the partnership agreement either for the return of the contribution or for the dissolution of the Labuan limited partnership.
(5)
A limited partner has, notwithstanding the nature of his contribution, only the right to demand and receive money in return for it, unless—
(a)
there is a statement to the contrary in the partnership agreement; or
(b)
all the partners consent to some other manner of returning the contribution.
(6)
In this section, “payment” includes the release of any obligation forming part of the capital contribution, and any liability to make repayments pursuant to subsection (2) shall be construed accordingly.
Act 707
Limited partner’s liability to Labuan limited partnership