The Introduction of Limited Liability Partnership Law in Lagos State of Nigeria as an Alternative to the Existing Forms of Business Organization: Echoes of a New Dawn? (Published)
Lagos State in 2009 emulated developed countries like the UK and the US and incorporated the limited liability partnership law. Prior to the introduction of this form of business organization, the existing forms of business organization in Nigeria include the sole proprietorship, traditional partnership, limited partnership, private and public companies limited by shares, unlimited company and company limited by guarantee. These forms of business organization in existent before the enactment of limited liability partnership law in Lagos state were considered deficient and efficient in some areas. Of this, the introduction of a new form of organization in Nigeria that will fill in the weaknesses of the prevalent forms of business organization became a necessity. Lagos state hastily followed suit with developed countries and ‘injected’ the limited liability partnership model into its business law. In this paper, the limited liability partnership law will be critically examined to ascertain whether and to what extent it has fulfilled the hopes of its advent. The paper reached a conclusion that undoubtedly the limited liability partnership model has provided some benefits but nevertheless will encourage malpractice among the partners. By and large, whilst the paper proposes the incorporation of limited liability partnership in other states in Nigeria, it also advocates for a regulatory legal framework on whistle-blowing to control malpractices among the partners in a limited liability partnership.
Keywords: Sole Proprietorship, business organization, general partnership, limited liability partnership, limited partnership