Duhaime's Law Dictionary


Silent Partner Definition:

A person who invests in a company or partnership but does not take part in administering or directing the organization; he or she just shares in the profits or losses.

This is not strictly a legal word although it appears to refer to the concept of a limited partner; a partner not fully liable for his partners debts and liabilities, as general partners are to one another, but has his liability limited to the amount of his investment; hence, a limited partner.

However, as the notoriety of a partner's limited liability may be essential to maintaining that limitation, "silent" does not mean unknown or hidden. It means that the partner does not interfere in management ... remains silent!


Always looking up definitions? Save time with our search provider (modern browsers only)

If you find an error or omission in Duhaime's Law Dictionary, or if you have suggestion for a legal term, we'd love to hear from you!