When is a Partnership Member Expelled from the Company?

According to the provisions of the Law on Enterprises 2014, an enterprise is an organization with its own name, assets, a trading office, and is registered for establishment in accordance with the law for the purpose of conducting business. Within this, a partnership company must have at least 02 members who are co-owners of the company and jointly conduct business under a common name (collectively referred to as general partners). Besides the general partners, the company may have additional capital-contributing members.

The rights and obligations of the general partners are carried out according to Article 176 of the Law on Enterprises 2014 and other relevant legal provisions. In certain specific cases, a general partner in the company may be expelled.

According to Clause 3, Article 180 of the Law on Enterprises 2014, a general partner is expelled from the company in the following cases:

- Inability to contribute capital or failure to contribute capital as committed after the company has made a second request;

- Violation of Article 175 of the Law on Enterprises 2014;

- Conducting business dishonestly, carelessly, or performing other inappropriate acts causing serious damage to the interests of the company and other members;

- Failing to fulfill the obligations of a general partner.

In cases where a general partner is expelled from the company, the status of the general partner shall terminate from the time the expulsion decision takes effect.

The above reflects our advisory opinion regarding the issue you are inquiring about.

Respectfully!