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Silent partner

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!

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Unless otherwise noted, this article was written by Lloyd Duhaime, Barrister, Solicitor, Attorney and Lawyer (and Notary Public!). It is not intended to be legal advice and you would be foolhardy to rely on it in respect to any specific situation you or an acquaintance may be facing. In addition, the law changes rapidly and sometimes with little notice so from time to time, an article may not be up to date. Therefore, this is merely legal information designed to educate the reader. If you have a real situation, this information will serve as a good springboard to get legal advice from a lawyer.

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