Labuan Limited Partnerships and Limited Liability Partnerships Act 2010 s 56
s 56 Limited liability of partners
(1) An obligation of the Labuan limited liability partnership whether arising in contract, tort or otherwise, is solely the obligation of the Labuan limited liability partnership.
(2) A partner is not personally liable, directly or indirectly, by way of indemnification, contribution, assessment or otherwise, for an obligation referred to in subsection (1) solely by reason of being a partner of the Labuan limited liability partnership.
(3) Subsections (1) and (2) shall not affect the personal liability of a partner in tort for his own wrongful act or omission, but a partner shall not be personally liable for the wrongful act or omission of any other partner of the Labuan limited liability partnership.
(4) Where a partner of a Labuan limited liability partnership is liable to any person, other than another partner of the Labuan limited liability partnership, as a result of a wrongful act or omission of his in the course of the business of the Labuan limited liability partnership or with its authority, the Labuan limited liability partnership is liable to the same extent as the partner.
(5) The liabilities of the Labuan limited liability partnership shall be met out of the property of the Labuan limited liability partnership.
(6) Notwithstanding anything in this Act, a partner or former partner of a Labuan limited liability partnership who receives a distribution from the Labuan limited liability partnershipβ
(a) when the Labuan limited liability partnership is insolvent and knew or ought to have known at the time of the distribution that the Labuan limited liability partnership was insolvent; or
(b) which results in the Labuan limited liability partnership becoming insolvent and knew or ought to have known at the time of distribution that the Labuan limited liability partnership would become insolvent as a result of the distribution,
shall be personally liable to the Labuan limited liability partnership for the amount or value of the distribution if it was received within a period of six months before the commencement of the winding-up of the Labuan limited liability partnership.
(7) For the purposes of this sectionβ
(a) a Labuan limited liability partnership is insolvent at a particular time ifβ
(i) it is at that time, unable to pay its debts as they become due in the normal course of business; or
(ii) at that time, the value of the Labuan limited liability partnershipβs assets is less than the value of its liabilities;
(b) βdistributionβ means any payment of dividends, distribution of profits, return or refund of capital by the Labuan limited liability partnership, whether in cash or in kind; and
(c) a partner or former partner shall be deemed to have received a distribution if the distribution is received by that partner or former partnerβs assignee.
Malay text (authoritative)
Liabiliti terhad pekongsi
(1) Sesuatu obligasi perkongsian liabiliti terhad Labuan sama ada berbangkit daripada kontrak, tort atau selainnya, ialah obligasi perkongsian liabiliti terhad Labuan itu semata-mata.
(2) Seseorang pekongsi tidak bertanggungan sendiri, secara langsung atau tidak langsung, melalui tanggung rugi, sumbangan, penaksiran atau selainnya, bagi sesuatu obligasi yang disebut dalam subseksyen (1) semata-mata oleh sebab menjadi seorang pekongsi bagi perkongsian liabiliti terhad Labuan itu.
(3) Subseksyen (1) dan (2) tidak menjejaskan liabiliti diri seseorang pekongsi dalam tort bagi perbuatan salah laku atau peninggalannya sendiri, tetapi seseorang pekongsi tidak boleh bertanggungan sendiri bagi perbuatan salah laku atau peninggalan mana-mana pekongsi lain bagi perkongsian liabiliti terhad Labuan itu.
(4) Jika seseorang pekongsi sesuatu perkongsian liabiliti terhad Labuan adalah bertanggungan kepada mana-mana orang, selain pekongsi lain perkongsian liabiliti terhad Labuan itu, akibat perbuatan salah laku atau peninggalannya semasa menjalankan perniagaan perkongsian liabiliti terhad Labuan itu atau dengan kuasanya, perkongsian liabiliti terhad Labuan itu adalah bertanggungan ke takat yang sama seperti pekongsi itu.
(5) Liabiliti perkongsian liabiliti terhad Labuan hendaklah dibayar daripada harta perkongsian liabiliti terhad Labuan itu.
(6) Walau apa pun apa-apa jua dalam Akta ini, seseorang pekongsi atau bekas pekongsi sesuatu perkongsian liabiliti terhad Labuan yang menerima pembahagian daripada perkongsian liabiliti terhad Labuan ituβ
(a) apabila perkongsian liabiliti terhad Labuan itu tidak solven dan mengetahui atau sepatutnya mengetahui pada masa pembahagian itu bahawa perkongsian liabiliti terhad Labuan itu tidak solven; atau
(b) yang mengakibatkan perkongsian liabiliti terhad Labuan itu menjadi tidak solven dan mengetahui atau sepatutnya mengetahui pada masa pembahagian itu bahawa perkongsian liabiliti terhad Labuan itu akan menjadi tidak solven akibat pembahagian itu,
hendaklah bertanggungan sendiri kepada perkongsian liabiliti terhad Labuan itu bagi amaun atau nilai pembahagian itu jika pembahagian itu telah diterima dalam tempoh enam bulan sebelum permulaan penggulungan perkongsian liabiliti terhad Labuan itu.
(7) Bagi maksud seksyen iniβ
(a) sesuatu perkongsian liabiliti terhad Labuan adalah tidak solven pada sesuatu masa tertentu jikaβ
(i) perkongsian liabiliti terhad Labuan pada masa itu, tidak berupaya untuk membayar hutangnya apabila hutang itu kena dibayar dalam perjalanan biasa perniagaan; atau
(ii) pada masa itu, nilai aset perkongsian liabiliti terhad Labuan itu adalah kurang daripada nilai liabilitinya;
(b) βpembahagianβ ertinya apa-apa pembayaran dividen, pembahagian keuntungan, pemulangan atau pembayaran balik modal oleh perkongsian liabiliti terhad Labuan itu, sama ada dalam bentuk wang tunai atau barang-barang; dan
(c) seseorang pekongsi atau bekas pekongsi hendaklah disifatkan telah menerima pembahagian jika pembahagian itu diterima oleh pekongsi itu atau pemegang serah hak bekas pekongsi itu.
Read this section in the full act β Β· Open Chapter 4 β
Find Act 707 on lom.agc.gov.my β
Text as at 1 July 2023 (LOM reprint); amendments made after that date may not be incorporated.
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).
