Partnerships warned over personal liability

Date: 20th April 2009

Partnerships have been warned to safeguard their business from the possibility of personal liability during the recession.

According to the law firm Mace and Jones, a large number of UK partnerships are lacking the legal documentation to protect themselves from personal culpability as a result of business debts.

Considering this, members of partnerships may want to consider consulting with an accountant on how to best limit liability during the economic downturn.

Graeme Jump, a partner at the firm, said: "The wrath of recession is bearing down on traditional business partnerships which are often not equipped to protect their owners."

He added that for partnerships personal liability "is being brought home", leaving some looking at how they can cut debts or even restructure.

Earlier this month, an expert from the website smallbusiness.co.uk claimed that small enterprises should be looking to capitalise on weakened opposition during the recession.