Malaysia legislation

Section 61

of LABUAN LIMITED PARTNERSHIPS AND LIMITED LIABILITY PARTNERSHIPS ACT 2010

Section 61

(2)

A partner of a Labuan limited liability partnership may cease to be a partner in accordance with the partnership agreement, or in the absence of such agreement, by that partner giving thirty days’ written notice to the other partners of that partner’s intention to resign as a partner.

(3)

Without affecting the generality of subsection (2), a partner of a Labuan limited liability partnership shall cease to be a partner upon the death or dissolution of the partner.

(4)

Where a partner of a Labuan limited liability partnership ceases to be a partner, unless otherwise provided in the partnership agreement, the former partner, his personal representative or its liquidator, as the case may be, shall be entitled to receive from the Labuan limited liability partnership an amount—

(a)

equal to the former partner’s capital contribution to the

Labuan limited liability partnership and the former partner’s right to share in the accumulated profits of the

Labuan limited liability partnership after the deduction of losses of the Labuan limited liability partnership; and

(b)

determined as at the date the former partner ceased to be a partner.

(5)

For the avoidance of doubt, a former partner, his personal representative or its liquidator, as the case may be, shall not interfere in the management of the Labuan limited liability partnership.

Act 707

Bankruptcy of a partner

Section 61 — AKTA PERKONGSIAN TERHAD DAN PERKONGSIAN LIABILITI TERHAD LABUAN 2010