Abstract
This paper aims to ascertain whether the personal creditor of a partner, and also of the sole owner of a single-owned limited liability business, can seek its dissolution due to the insolvency of the debtor, thereby enhancing the debtor’s financial capacity through the distribution of the liquidation dividend. The study delves into the authentic historical context of the Civil Code provisions applicable to the subject in search of their rationale, within the context of general partnerships, limited liability partnerships, and single-owned limited liability businesses. Considering that the interpretation is conditioned by the business form and that the outcome should balance the interests of both business and personal creditors, it is concluded that in general partnerships and individual businesses, the personal creditors of an insolvent partner or owner can seek the winding up of the partnership or the business. In contrast, the personal creditors of a partner in a limited liability limited partnership cannot do so, as it would disrupt the balance between the two groups of creditors.
Translated title of the contribution | Entitlement of the personal creditor of the insolvent partner or sole owner to petition for the dissolution of a partnership or single-owned limited liability business |
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Original language | Spanish |
Pages (from-to) | 123-144 |
Number of pages | 22 |
Journal | Revista de Derecho (Chile) |
Volume | 61 |
DOIs | |
State | Published - 2023 |
Bibliographical note
Publisher Copyright:© 2023, Pontificia Universidad Catolica de Valparaiso. All rights reserved.
Keywords
- Partnerships
- single-owned limited liability businesses
- insolvency
- partnership dissolution