The LLP shall maintain separate capital contribution account for each partner. The capital of the LLP shall be____which shall be provided in the part is mentioned in Schedule 5. Each partners contribution to withdrawal from. The LLP shall be particularly credited to or debited to the the current account or partners capital account as the case may be.
Forms of contribution
The contribution of the partner may be intangible, tangible,moveable or immoveable property, or in the form of contract of service etc. However, the contribution in a form other than money shall be valued by an approved valuer, as provided under the LLP act/rules.
Nature of contribution
The point to the allocation of this agreement, the partner with capital commitment of a partner shall represent the maximum aggregate amount of cash and property that such partner is needed to contribute to the capital of the LLP terms of this agreement and shall not be changed during the term of the LLP, without such partners consent.
Any other capital contribution, if needed by the LLP, shall brought in their profit sharing ratio by the partners. In further, the capital contribution is taken by the partners are assemble in the meeting.
Withdrawal of contribution
Concern to the allocation of this agreement, no partner shall have the right to any part of his capital contribution or withdraw from the LLP all.
Mode of return of capital contribution
A partner, irrespective of the nature of his capital contribution, shall only have the right to demand and receive cash in return for his capital contribution. This shall however be subject to the agreement of the partners in a duly convened meeting.
Interest on contribution
No interest shall be payable on or capital partners or with respect to the capital contributions or accounts.
Liability in case of disability or death of partner
In LLP, the interests of partners form their personal estate. In the event of the death or legal disability of any partner, trustee, the executor or administrator of such partner shall be bound by the provisions of this LLP agreement. If the partner is not a natural person of the official representative of such partner shall be bound by the provisions of this LLP agreement.