Dacheng Reform Approved by Beijing Bureau of Justice

On Nov10, 2009, the Beijing Bureau of Justice approved Beijing Dacheng Law Offices to change it’s from of organization from a general partnership law firm to a special general partnership law firm.

A special general partnership is an innovative professional structure building on the general partnership, suitable for providing paid services to customers requiring professional knowledge and special skills. Responsibility is divided as a special form of general partnership. Within this structure, when one or more partners, due to willful misconduct or gross negligence during their work, cause the partnership to take on enterprise debt, they must take full responsibility or full joint liability, while other partners take on limited liability based on their shares of corporate assets.

The newly amended “PRC Lawyers Law” Article XV Second Paragraph states: “a partnership law firm can be established by adopting a general partnership or a special general partnership. Partners in a partnership law firm take responsibility for the firm’s debt according to the form of partnership”. Provisions of 38th Article of “Law Firm Management Regulations” states only when one or more partners, due to willful misconduct or gross negligence during their work, cause the partnership to take on enterprise debt, those partners must take unlimited liability while other partners take on limited liability.