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Current affair diary 20/1/2021

Limited Liability Partnership

√Govt. to amend LLP Act to spur ease of business.

√Decriminalising various offences and permitting LLPs to issue non-convertible debentures are among the changes being proposed under the Limited Liability Partnership (LLP) Act.

√A Limited Liability Partnership (LLP) is a partnership in which some or all partners have limited liability.

√It therefore exhibits elements of partnerships and corporations.

√ In an LLP, one partner is not responsible or liable for another partner’s misconduct or negligence.

√ An LLP is a body corporate and legal entity separate from its partners. It has perpetual succession.

√ Being the separate legislation (i.e. LLP Act, 2008), the provisions of Indian Partnership Act, 1932 are not applicable to an LLP and it is regulated by the contractual agreement between the partners.

√Every Limited Liability Partnership shall use the words “Limited Liability Partnership” or its acronym “LLP” as the last words of its name.

√Every LLP shall have at least two designated partners being individuals, at least one of them being resident in India and all the partners shall be the agent of the Limited Liability Partnership but not of other partners.

?focus area for prelims 2021:
What is LLP and it’s characteristics


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