In brief: Isle of Man wins limited liability law race

The Isle of Man has beaten Jersey to the statute books with a limited liability law aimed at attracting professional partnerships. Its Limited Liability Companies Act was granted Royal Assent on 7 July, while Jersey's law allowing limited partnerships is not expected to become law until the end of this year. The Act allows the formation of a Limited Liability Company (LLC) which operates in a similar way to a limited partnership but is incorporated as a company. Instead of being liable for the total assets of the company, as in a conventional partnership, the members of an LLC have their liability limited by the amount of capital they contribute.