What is a notable governance requirement for limited partnerships?

A well-defined partnership agreement is critical for limited partnerships because it outlines the roles, responsibilities, profit-sharing, decision-making processes, and other vital aspects of how the partnership will operate. This agreement serves as a reference point for resolving disputes and clarifies the expectations of both general and limited partners. This is particularly important in limited partnerships, where general partners manage the business and take on unlimited liability, while limited partners have limited liability and typically do not engage in day-to-day operations. The structure provided by a partnership agreement helps ensure that all parties understand their rights and obligations, thus supporting the governance of the partnership.

The other options do not align with the primary governance requirements for limited partnerships. For example, while partnerships do not need a majority shareholder, the requirement for a partnership agreement is essential. Also, not all partners in limited partnerships are required to be registered at Companies House, and annual audits are typically not obligatory unless specified in the partnership agreement or if the partnerships meet certain thresholds.