Investment Limited Partnerships Act, 1994
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Return of capital. |
20.—(1) A limited partner shall not whether during his term as a limited partner of an investment limited partnership or on ceasing to be a limited partner at any time thereafter or otherwise on a dissolution of the investment limited partnership, receive out of the capital of the investment limited partnership a payment representing the return of any part of his contribution to the partnership unless at the time of and immediately following such payment the investment limited partnership is certified by the general partner, or if more than one, by a majority of the general partners, to be able to pay its debts in full as they fall due after the proposed return of contribution is made. | |
(2) For a period of four months from the date of receipt by a limited partner of any payment representing the return of a contribution by the limited partner or part thereof in circumstances where the certificate referred to in subsection (1) has not been secured, such payment shall in the event of insolvency of the investment limited partnership within such period be repayable by the limited partner with simple interest at the rate of 5 per cent. per annum, or such further sum as may be fixed by regulation made by the Minister, calculated on a daily basis to the extent that such contribution or part thereof is necessary to discharge a debt or obligation of the investment limited partnership incurred during the period in which the contribution represented an asset of the investment limited partnership. | ||
(3) In this section “receive” and “receipt” shall include the release of any undertaking forming part of a contribution and in this context a liability to make a repayment pursuant to subsection (2) shall be read to refer to due performance of such undertaking. | ||
(4) A distribution of any assets of an investment limited partnership to a limited partner shall be deemed to be a return of contribution for the purposes of subsection (1) to the extent that a distribution to him reduces the value of his share of the investment limited partnerships calculated on the basis of the value of the net assets of the investment limited partnership, below the value shown in the register maintained in accordance with section 13 as the amount contributed or undertaken to be contributed by him. |