Gazette Case: Shixin Ronghe Investment Management Co., Ltd. v. Chang'an International Trust Co., Ltd. et al.
The SPC Gazette confirms that when the managing partner of a limited partnership fails to assert the partnership's rights, a non-managing limited partner may sue in its own name for the benefit of the partnership. After a proper demand on the partnership and the managing partner goes unanswered, the court may recognize the limited partner's standing.
Holding
The SPC Gazette confirms that when the managing partner of a limited partnership fails to assert the partnership's rights, a non-managing limited partner may sue in its own name for the benefit of the partnership. After a proper demand on the partnership and the managing partner goes unanswered, the court may recognize the limited partner's standing.
Issues
limited partner derivative standingfailure of the managing partner to enforce rightsinteraction between the partnership agreement and statutory remedies