50-73.52:6 - Involuntary cancellation of limited partnership existence - Virginia Statutes

§ 50-73.52:6. Involuntary cancellation of limited partnership existence.

A. The existence of a limited partnership may be canceled involuntarily byorder of the Commission when it finds that the limited partnership has:

1. Continued to exceed or abuse the authority conferred on it by law;

2. Failed to maintain a registered office or a registered agent in theCommonwealth as required by law;

3. Failed to file any document required by this chapter to be filed with theCommission; or

4. Been convicted for a violation of 8 U.S.C. § 1324a(f), as amended, foractions of its partners constituting a pattern or practice of employingunauthorized aliens in the Commonwealth.

B. Before entering any such order, the Commission shall issue a rule againstthe limited partnership giving it an opportunity to be heard and show causewhy such an order should not be entered. The Commission may issue the rule onits own motion or on motion of the Attorney General.

C. The properties and affairs of a limited partnership whose existence hasbeen canceled pursuant to this section shall pass automatically to itsgeneral partners as trustees in liquidation. The trustees shall then proceedto (i) collect the assets of the limited partnership; (ii) sell, convey, anddispose of such of its properties as are not to be distributed in kind to itspartners; (iii) pay, satisfy, and discharge its liabilities and obligations;and (iv) do all other acts required to liquidate its business and affairs.After paying or adequately providing for the payment of all its obligations,the trustees shall distribute the remainder of its assets, either in cash orin kind, among its partners according to their respective rights andinterests.

D. Any limited partnership convicted of the offense listed in subdivision A 4shall immediately report such conviction to the Commission and file with theCommission an authenticated copy of the judgment or record of conviction. Alimited partnership whose existence is canceled pursuant to subdivision A 4shall not be eligible for reinstatement for a period of not less than oneyear.

(2008, c. 586; 2009, c. 167.)