Legal proceedings

(1) Except as provided in section 26 (4) (c), legal proceedings by or against a limited liability partnership shall be instituted by or against the limited liability partnership and any judgment shall be made in such proceedings in favour of or against the limited liability partnership only in the partnership’s name. 35 (2) Subject to sub-section (3) and except as provided in section 26 (4) (d), no judgment shall be enforced against any limited liability partnership property unless such judgment has been granted against the limited liability partnership. (3) Sub-section (1) shall not affect any right of a judgment creditor or a partner in a limited liability partnership to enforcement against that partner’s partnership’s interest and any sum due to such a partner from the partnership by way of repayment of a loan. (4) Where a judgment creditor of a partner in a limited liability partnership has a right of enforcement against any of the partner’s assets as described in sub-section (3), the other partner or partners of the limited liability partnership may prevent or stop enforcement against those assets by paying to the creditor whichever is the lesser of the amount for which enforcement is sought and an amount equal to the value of the first mentioned partner’s partnership interest, and any sum which may be due to him from the partnership by way of repayment of a loan. (5) The enforcement of a judgment obtained against a limited liability partnership pursuant to sub-section (1), by way of execution, or against the person responsible for winding-up the affairs of the limited liability partnership pursuant to section 26(4)(d), shall only be capable of being issued against and satisfied out of the property of the limited liability partnership as at the date of such execution (no account being taken of any changes in the partners composing the limited liability partnership prior to such date). (6) Any person may join or otherwise institute proceedings against– (a) one or more of the partners and any former partner of a limited liability partnership who is liable by virtue of section 6 (3) and (4); and 36 (b) any person holding partnership property on behalf of a limited liability partnership for the purposes of enforcement against such property.