Additionally, Williams is chairman of privately-held Enterprise Products Company, which through its affiliates owns Enterprise's general partner
and approximately 37% of the limited partner interests of Enterprise.
The FLP's partnership agreement should not waive the state-imposed fiduciary duties of the general partner
toward the limited partners.
The limited partners sued the general partners
for failing to fulfill their agreement.
The program might be perceived by managers and other staff as a hindrance to their advancement to full-time general partners
Tench Coxe, General Partner
of Sutter Hill Ventures
Dick can convert his general partner
interest into a limited partner interest without incurring tax on the transaction, unless his share of partnership recourse liabilities exceeds the pre-transaction basis in his partnership interest.
Under current law, adds Ehrenkranz, "The general partner
doesn't always get complete protection.
Recourse debt usually can be added to the general partner
's basis and at-risk basis, but LLCs do not have general partners
Although Enterprise and its general partner
believe that such expectations reflected in such forward-looking statements are reasonable, neither Enterprise nor its general partner
can give assurances that such expectations will prove to be correct.
In the FSA, the partnership agreement provided that the entity would continue for 50 years or until the general partner
and more than 50% of the limited partner interests agreed to termination.
Independent of the preferential distribution and subject to the business's reasonable needs, as general partners
the parents can decide whether they want to make distributions on the general partner
and nonpreferential limited partnership interests (keeping in mind that a general partner
has a fiduciary duty to act in the best interests of all partners).
Thompson, president and chief executive officer for TEPPCO's general partner