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{
    "id": 54355,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/54355/?format=api",
    "text_counter": 242,
    "type": "speech",
    "speaker_name": "Mr. Kimunya",
    "speaker_title": "The Minister for Transport",
    "speaker": {
        "id": 174,
        "legal_name": "Amos Muhinga Kimunya",
        "slug": "amos-kimunya"
    },
    "content": "Let me start by thanking all the various stakeholders who have been working on this, as part of the reforms on the institutional frameworks that govern or guide our companies, partnerships and all the business community. It has been worked on since the 1990s. If I remember, it came together with the revamping of the Companies Act when people asked why they do not also start sorting out the issue of partnerships. Hon. Members may recall a certain partnership that has gone under and, unfortunately, it is not the poorest of the partners who suffer. It is the most hardworking of the partners who actually suffer because under the partnership law, you are jointly and severally held responsible for all the debts of the partnership. This has caused people to start looking for ways of even setting up companies when they should have actually been dealing with issues that are best dealt as partnerships. This is especially on the ones that require certain skills and where the people professing or practising those skills are licensed, because of the skills they have rather than the capital they have invested. However, in the absence of any protection in terms of their capital, people have ended up moving and forming, for example, consultancies through companies instead of forming a consultancy, through putting the various partners through a limited liability partnership. So, we see this as a natural response to the cries of all the professionals who have wanted a framework to operate, but with their risks limited to what they put in or agree. I must congratulate the Attorney-General’s office for not only updating the Companies Act and the Partnership Act, but also for bringing this hybrid which will now resolve the issue for all the professionals many who are represented in this House. They would like to practice their professional skills, but at the same time ensure that what they stand to lose in the event of winding up or something going wrong with their operation is clear."
}