Labuan Limited Partnerships and Limited Liability Partnerships Act 2010 s 58
s 58 Relationship of partners
(1) Except as otherwise provided by this Act, the mutual rights and duties of the partners of a Labuan limited liability partnership, and the mutual rights and duties of a Labuan limited liability partnership and its partners, shall be governed by the partnership agreement.
(2) In the absence of agreement on any matter, the mutual rights and duties of the partners of a Labuan limited liability partnership, and the mutual rights and duties of a Labuan limited liability partnership and its partners shall be determined, subject to the terms of any partnership agreement, by the following provisions:
(a) all the partners of a Labuan limited liability partnership are entitled to share equally in the capital and profits of the Labuan limited liability partnership;
(b) the Labuan limited liability partnership must indemnify each partner in respect of payments made and personal liabilities incurred by that partner—
(i) in the ordinary and proper conduct of the business of the Labuan limited liability partnership; and
(ii) in or about anything necessarily done for the preservation of the business or property of the Labuan limited liability partnership;
(c) every partner may take part in the management of the Labuan limited liability partnership;
(d) no partner shall be entitled to remuneration for acting in the business or management of the Labuan limited liability partnership;
(e) no person may be introduced as a partner without the consent of all existing partners;
(f) any matter or issue relating to the Labuan limited liability partnership shall be decided by resolution passed by a majority in number of the partners, and for this purpose, each partner shall have one vote;
(g) each partner shall render true accounts and full information of all things affecting the Labuan limited liability partnership to any other partner or that other partner’s legal representatives;
(h) if a partner, without the consent of the Labuan limited liability partnership, carries on any business of the same nature as and competing with the Labuan limited liability partnership, that partner must account for and pay over to the Labuan limited liability partnership all profits made by that partner in that business;
(i) every partner must account to the Labuan limited liability partnership for any benefit derived by that partner without the consent of the Labuan limited liability partnership from any transaction concerning the Labuan limited liability partnership, or from any use by that partner of the property, name or any business connection of the Labuan limited liability partnership; and
(j) no majority of the partners can expel any partner unless a power to do so has been conferred by express agreement between the partners.
Malay text (authoritative)
Hubungan pekongsi
(1) Kecuali sebagaimana yang diperuntukkan selainnya oleh Akta ini, hak dan kewajipan bersama pekongsi-pekongsi sesuatu perkongsian liabiliti terhad Labuan, dan hak dan kewajipan bersama sesuatu perkongsian liabiliti terhad Labuan dengan pekongsipekongsinya, hendaklah ditentukan oleh perjanjian perkongsian.
(2) Jika tiada perjanjian mengenai apa-apa perkara, hak dan kewajipan bersama pekongsi-pekongsi sesuatu perkongsian liabiliti terhad Labuan, dan hak dan kewajipan bersama sesuatu perkongsian liabiliti terhad Labuan dengan pekongsi-pekongsinya hendaklah ditentukan, tertakluk pada terma mana-mana perjanjian perkongsian, oleh peruntukan yang berikut:
(a) semua pekongsi sesuatu perkongsian liabiliti terhad Labuan berhak untuk berkongsi sama rata modal dan keuntungan perkongsian liabiliti terhad Labuan itu;
(b) perkongsian liabiliti terhad Labuan mestilah menanggung rugi setiap pekongsi berkenaan dengan pembayaran yang dibuat dan liabiliti peribadi yang dilakukan oleh pekongsi itu—
(i) dalam perjalanan biasa dan wajar perniagaan perkongsian liabiliti terhad Labuan itu; dan
(ii) dalam atau tentang apa-apa jua yang dibuat dengan perlu bagi pemeliharaan perniagaan atau harta perkongsian liabiliti terhad Labuan itu;
(c) tiap-tiap pekongsi boleh mengambil bahagian dalam pengurusan perkongsian liabiliti terhad Labuan itu;
(d) tiada pekongsi berhak kepada saraan kerana bertindak dalam perniagaan atau pengurusan perkongsian liabiliti terhad Labuan itu;
(e) tiada seorang pun boleh dimasukkan sebagai pekongsi tanpa persetujuan kesemua pekongsi yang sedia ada;
(f) apa-apa perkara atau isu yang berhubungan dengan perkongsian liabiliti terhad Labuan itu hendaklah diputuskan melalui ketetapan yang diluluskan oleh majoriti bilangan pekongsi, dan bagi maksud ini, setiap pekongsi hendaklah mempunyai satu undi;
(g) setiap pekongsi hendaklah memberikan penjelasan yang benar dan maklumat lengkap bagi semua perkara yang menyentuh perkongsian liabiliti terhad Labuan itu kepada mana-mana pekongsi lain atau wakil di sisi undang-undang pekongsi lain itu;
(h) jika seseorang pekongsi, tanpa persetujuan perkongsian liabiliti terhad Labuan itu, menjalankan apa-apa perniagaan yang sama jenis seperti dan bersaing dengan perkongsian liabiliti terhad Labuan itu, pekongsi itu mestilah menjelaskan dan membayar kepada perkongsian liabiliti terhad Labuan itu semua keuntungan yang dibuat olehnya dalam perniagaan itu;
(i) tiap-tiap pekongsi mestilah menjelaskan kepada perkongsian liabiliti terhad Labuan itu bagi apa-apa faedah yang diperolehnya tanpa persetujuan perkongsian liabiliti terhad Labuan itu daripada apa-apa transaksi yang berkenaan dengan perkongsian liabiliti terhad Labuan itu, atau daripada apa-apa kegunaan oleh pekongsi itu daripada harta, nama atau apa-apa hubungan perniagaan perkongsian liabiliti terhad Labuan itu; dan
(j) tiada majoriti pekongsi boleh memecat mana-mana pekongsi melainkan jika kuasa untuk berbuat demikian telah diberikan oleh perjanjian secara nyata antara pekongsi-pekongsi.
Read this section in the full act → · Open Chapter 4 →
Find Act 707 on lom.agc.gov.my ↗
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).
