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Posted: December 9th, 2022
Charlie is a limited partner in a limited partnership. Charlie has recently been contacted by an attorney to review some of Charlie’s recent activities. Discuss Charlie’s liability for each of the following statements and actions.
Charlie has been hired as a consultant for the limited partnership
Charlie identified several management problems and made recommendations that included removing one of the general partners, expanding into an additional line of business, and borrowing substantial money to finance the expansion.
At a partnership meeting to discuss Charlie’s recommendations, Charlie voted to remove the partner, expand the business and borrow money.
To get the loan to finance the business, Charlie executed a personal guarantee on the loan.
The partnership dissolved after a short period of time. Upon dissolution, the partnership debts exceeded the assets. Numerous creditors claim that Charlie should be considered a general partner.
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