The Legal Framework of General Partnerships under Libyan Legislation: An Analytical Comparative Study

Abstract

This study aimed to examine the legal framework governing general partnerships under Libyan legislation by analyzing the legal provisions regulating their concept, formation, characteristics, partners' liability, company management, and the adequacy of these provisions in achieving a balance between the interests of partners and the protection of creditors and third parties dealing with the company. The study was based on the following main research question: To what extent has the Libyan legislator succeeded in regulating the legal framework of general partnerships, and how adequate are the legal provisions governing them in achieving a balance between the interests of partners and the protection of third parties? The study adopted the analytical method to examine the legal texts regulating general partnerships under Libyan law, in addition to the comparative method through reference to selected comparative legislations. The findings revealed that a general partnership is founded on personal consideration and mutual trust among partners and is characterized by the partners' joint and unlimited liability. The study also found that the establishment of a general partnership requires the fulfillment of both general and specific substantive conditions. Furthermore, the Libyan legislator has established legal safeguards that seek to balance the protection of partners with the rights of creditors, while defining the powers of the company manager and the company's liability for the manager's acts within the limits prescribed by law and the articles of association. The study recommends updating the legal provisions governing general partnerships in line with economic developments, strengthening registration and publication procedures, improving the regulation of the partnership agreement, enhancing legal protection for partners and third parties, and benefiting from comparative legislative experiences to further develop Libyan legislation.