Arizona Corporation Commission
Securities Division
Matthew J. Neubert - Director
1300 W. Washington St. 3rd Floor
Phoenix, AZ 85007
(602) 542-4242
(866) 837-4399
Matthew J. Neubert - Director
1300 W. Washington St. 3rd Floor
Phoenix, AZ 85007
(602) 542-4242
(866) 837-4399
|
Limited Partnerships
Generally, a limited partner has no right to manage or control the partnership business. See A.R.S. § 29-319. Thus, limited partnership interests are securities. See S.E.C. v. Murphy, 626 F.2d 633 (9th Cir. 1980), McGreghar Land Co. v. Meguiar, 521 F.2d 822 (9th Cir. 1975).
Not only are the limited partnership interests securities, but sometimes the business of the limited partnership is investing in securities. For example, hedge funds are sometimes limited partnerships. The partnership raises money by selling limited partnership interests and then uses the money raised to invest in securities. In Arizona, the general partner of a limited partnership that invests in securities may be an investment adviser and may need to license under the Investment Management Act of Arizona.
The information provided on this web site is not comprehensive, is not offered as legal advice, and is not a substitute for competent legal counsel. The Securities Division recommends that you consult with a securities attorney. |
