Unlimited Liability Burdens Malaysian Businesses, Limited Liability Partnership Offers Relief
The main problem in Malaysia's Partnership Act is that partners have unlimited liability, meaning they can be personally responsible for any issues in the firm. Partners can be held liable for each other's actions and debts of the firm. To address this, a proposal for the Limited Liability of Partnership Act (LLP) in Malaysia has been suggested to limit partners' liabilities. Many in the business world support adopting the LLP Act from the UK into Malaysia's Partnership Act to address these issues.