Gazette Case: Nantong Shuangying Trading Co., Ltd. v. Lianda Machinery Factory of Dantu District, Zhenjiang, Wei Hengnie et al.
The Gazette case confirms that where several persons jointly operate a business and jointly decide its business affairs, a partnership relationship may be found. Their deliberate failure to update the registration to reflect the partnership does not relieve them of external liability for debts incurred in partnership operations.
Holding
The Gazette case confirms that where several persons jointly operate a business and jointly decide its business affairs, a partnership relationship may be found. Their deliberate failure to update the registration to reflect the partnership does not relieve them of external liability for debts incurred in partnership operations.
Issues
recognition of an actual partnership relationshipexternal liability despite failure to update registrationliability for partnership debts