Nominal Partner Law and Legal Definition
Partners are people who join together and form a partnership for a business venture. A nominal partner is a partner in the business who has no actual interest in the trade or its profits. However, the person allows his/her name to be used in the business. A nominal partner holds himself/herself out to the world as having an apparent interest in the business. A nominal partner will be liable as a partner, because of the false appearance the person holds before the world.
A nominal partner will have an interest in the success of a partnership firm but, legally, the person will not be a partner. This is because the person neither owns a part of the firm nor actively participates in its affairs. Generally, a nominal partner is a well known, well connected individual whose name lends credibility and recognition to the firm. A nominal partner is paid a fee for this service. A nominal partner can also be known as limited partner or ostensible partner.
Legal Definition list
Related Legal Terms
- Adult Interdependent Partner
- Aggregate Theory of Partnership
- Articles of Partnership
- Arts Education Partnership
- Business Partner Network (BPN)
- Center for Faith Based and Neighborhood Partnerships [HUD]
- Center for Faith-Based and Neighborhood Partnerships [HUD]
- Civil Partnership
- Community Partnership