The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

SLEEPING PARTNER Definition & Legal Meaning

Definition & Citations:

A dormant partner ; one whose name does not appear in the firm, and who takes no active part in the business, but who has an interest in the concern, and shares the profits, and thereby becomes a partner, either absolutely, or as respects third persons.

TLD Example: Each state sets its own rules for conducting business as a limited partnership with many of them prohibiting the sleeping partner from participating in the management of the enterprise

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