Member of a partnership who shares in the partnership's profits and losses but is not involved in active management of the company. A silent partner could still be personally liable for the company's debts unless the partnership is a limited liability partnership.
Definition from Nolo’s Plain-English Law Dictionary
An investor who puts money into a business and in exchange receives a share in the profits, but takes no part in management and may be unknown to the public or customers. A silent partner may be liable for business debts and judgments unless designated as a limited partner in a limited partnership agreement.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:24 pm