General partners must report their business situation and resultsis legal content that readers often need to check carefully before implementing it in practice. This article has been systematized by ANT Legal in an easy-to-understand manner, helping individuals and businesses understand the main issues, common risks and appropriate solutions.

When must general partners report their business situation and results to the partnership?

Pursuant to Clause 2, Article 181 of the Law on Enterprises 2020 on the rights and obligations of general partners:

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Rights and obligations of partnership members
…
2. Partnership members have the following obligations:
a) Conduct management and conduct business activities honestly, carefully and in the best way to ensure maximum legal benefits for the company;
b) Manage and carry out business activities in accordance with the provisions of law, the Company’s Charter and resolutions and decisions of the Board of Members; If you violate the regulations at this point and cause damage to the company, you must be responsible for compensating for the damage;
c) Do not use company assets for personal gain or to serve the interests of other organizations or individuals;
d) Return to the company the amount of money and assets received and compensate for damage caused to the company in the case of receiving money or other assets from the company’s business activities on behalf of the company, on behalf of an individual or on behalf of another person without paying it to the company;
d) Jointly responsible for paying all remaining debts of the company if the company’s assets are not enough to cover the company’s debts;
e) Bear the loss corresponding to the capital contribution to the company or according to the agreement stipulated in the company’s Charter in case the business company suffers a loss;
g) Regularly and monthly report honestly and accurately in writing on your business situation and results to the company; provide information about its business situation and results to members who request;
h) Other obligations according to the provisions of this Law and the company’s Charter.

Thus, on a monthly basis, partners must have the obligation to report honestly and accurately in writing on their business situation and results to the company; provide information about its business situation and results to members who request;

In other words, partners must report their business situation and results to the partnership on a monthly basis.

Is a general partner expelled from the company if he fails to report his/her business situation and results to the partnership?

Pursuant to Article 185 of the Law on Enterprises 2020 on termination of general partner status:

Termination of general partnership member status
…
3. A general partner is expelled from the company in the following cases:
a) Inability to contribute capital or failure to contribute capital as committed after the company has made a second request;
b) Violation of the provisions of Article 180 of this Law;
c) Conducting business dishonestly, carelessly or with inappropriate behavior Other cases causing serious damage to the interests of the company and other members;
d) Failure to properly perform the obligations of a general partner.
At the same time, as analyzed above, one of the obligations of a general partner is to report honestly and accurately in writing on a monthly basis on his/her business situation and results to the company; Provide information about your business situation and results to members who request.

Thus, a general partner can be expelled from the company if he or she does not report his or her business situation and results to the partnership company.

Because the act of not reporting your business situation and results to the partnership can be considered a failure to properly perform the obligations of a partnership member.

When does a partnership company have legal status?

Pursuant to Article 177 of the Law on Enterprises 2020 on partnerships:

Partnership company
1. A partnership is an enterprise in which:
a) There must be at least 02 members who are joint owners of the company, doing business together under a common name (hereinafter referred to as partnership members). In addition to general partners, the company may have additional capital contributing members;
b) General partners must be individuals, responsible with all their assets for the company’s obligations;
c) Capital contributing members are organizations and individuals and are only responsible for the company’s debts within the amount of capital committed to contributing to the company.
2. A partnership company has legal status from the date of issuance of the Business Registration Certificate.
3. A partnership company is not allowed to issue any type of securities.

Thus, the partnership company has legal status from the date of issuance of the Business Registration Certificate.

Note on Applying Current Legal Regulations

This article belongs to the Business & M&A group and is presented for reference purposes, helping readers understand the legal issue at an overview level before preparing a dossier or carrying out a transaction.

Legal regulations may vary depending on the timing, locality, type of dossier and specific circumstances. If you need to determine the exact legal basis applicable to your case, you should contact ANT Legal’s lawyers at 0966.475.966 for review and advice before proceeding.

Common Legal Risks to Note

Applying legal instruments that have been amended, supplemented or replaced.
Preparing an incomplete set of documents, materials or necessary evidence.
Misunderstanding the conditions, procedure, timeline or competent authority.
Signing, submitting a dossier or carrying out a transaction before fully assessing legal risks.

How Can ANT Legal Support You?

ANT Legal can review the specific circumstances, examine the dossier, identify the applicable legal basis, advise on an appropriate handling plan and represent clients in working with individuals, organizations or competent authorities where necessary.

For prompt advice, you may contact a lawyer at 0966.475.966.

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When must a partnership member report his/her business situation and results to the partnership?