Why are ordinary partnerships unable to issue floating charges?
I have an idea why, I know LLP’s can, I just don’t know exactly why.
Please help, thanks.
Eoin.
ACCA Forums
LWPartnerships and floating charges.
I think this has to do with the issue of lack of separate legal personality of ordinary partnerships. In effect the holder of floating charge would be in a preferential position over other unsecured creditors and this could lead to abuse or unfairness to other creditors. Hope this helps.
Yep, this is what I thought it was something like that alright.
Thanks mrjonbain.
You are welcome.
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