Simple English definitions for legal terms
Read a random definition: private company
A silent partner is someone who invests money in a business but doesn't help run it. They are still responsible for any debts the business incurs and can share in the profits, but their name is usually kept private.
Definition: A silent partner, also known as a dormant partner, is an investor who contributes capital to a partnership but does not participate in the daily operation or management of the business. The silent partner is liable for any debts incurred by the partnership and has the same rights to share in the profits of the business as the active partners. The identity of the silent partner is usually not publicly disclosed.
These examples illustrate how a silent partner contributes capital to a business but does not play an active role in its management. The silent partner is still responsible for any debts incurred by the business, but they do not have the same level of involvement as the active partner.