In this blog at first we are going to talk about the Relationships and eligibility criteria to become a partner. The persons who applied to be as a partner in the LLP document or any other persons who is willing to become the partner according to the LLP agreement can become the partners at the time of LLP Registration.
Relationship between the partners
The mutual rights and duties of the partners of Limited Liability partnership and the rights and duties in-between the partners are governed by LLP agreement between the partners and the llp and the partners.
If the limited liability agreement contains any changes, then it will file with the registrar in an appropriate form by appropriate fees.
The LLP agreement should be made before the Incorporation of LLP between the partners who are applied for the partner position and the agreement may get approve after the registration of LLP.
If the agreement is absent in certain cases, then the duties and the rights of partners and the LLP and the partners are gets settled and follow up by the first schedule.
Winding up of Relationships of the Partnership interest
If any person stops his position from the partnership of LLP in accordance with the agreement and other partners or in the absence of agreement or the partners, then he must have to file the notice within 30 days from the official resign.
There are certain conditions to be the termination or stoppage of the partner from her/his position. The conditions are
- The person’s death or the disbanding of limited liability partnership
- If the person is declared as unsound mind by the proficient court
- The application is adjudged as insolvent or declared as insolvent.
When the person stops his partnership from LLP, then the former partner is still being a partner of llp unless
- The person has notice that the former partner is winding up the position of Limited Liability Partnership.
- Notice that the Former partner ending up his stance to the registrar of the LLP
The termination of the partner from the company does not subject to the limited liability partnership or any other partner or the person when the partner supported while he is in the position.
Cases of Relationships retirement
The person can able to retire from the position only if the LLP Agreement satisfies the condition and he must have to entitle his shares as the consequences of death or insolvency.
The shares in the profit of the LLP get deducted from the losses of the LLP at the time of the partner retires from his position.
The person who entitled his share in the consequences of death or insolvency of the former partner shall not have any right to interfere in the management rules of LLP.
Registration of changes in partners
Every partner should inform the limited liability partnership of any changes in the name and address of him within 15 days of such change.
The limited liability partners should
- The person appoints or ceases to be a partner, file a notice to the registrar within 30 days from the appointment or cease as partner.
- If there is any change in the name, address of partner, then he may have to file a notice from 30 days of such changes.
Breakage of the LLP Act
The notice filed with the Relationships of registrar under sub-section 2
Should be in a form and associated with concerned fees.
Should sign by the former partner of the LLP and authenticated legally in a prescribed format.
If there is any new coming partner, then he must have to sign in the notice of the partnership deed and authenticated in the manner as may be prescribed.
If the LLP breaks the sub section 2 of limited liability partnership and the partners may punishable with fine of not less than two thousands, but it may extend to twenty five thousand rupees.
If any person breaks the provision of sub section (1) then he may get punishable to the fine two thousand and sometimes it may extend to twenty five thousands rupees.
If any person breaks the position of partnership Relationships and he may file a notice to the registrar according to sub section (3). And if the notice may not file by the registrar, he may force to get the confirmation to this effect from the limited liability partnership.
The extent and limitations of the responsibility of the Limited liability partnership and partners
The partners as agents
Evert partners of the limited liability partnership is act as the agent of the LLP but not for other persons.
Extent of Limited Liability partnership
- The LLP is not bound by any activity done by the partners in dealing with other persons, If
- The partner do not have any right to act for the incorporation of LLP Relationships and
- The person know that he do not have any authority or right to act for the LLP
- The limited liability partnership is responsible for the partner’s act in any other person’s wrongful act or his omission from the position.
- The responsibility of the LLP whether arising in contract shall be the obligation of the Limited Liability Partnership.
- The responsibility of the LLP should meet the property of the limited liability partnership.
Extent of the responsibility of partners
- The person is not personally responsible for the activities of LLP in accordance with the sub-section (3) of section 27.
- The provision of sub-section (3) of section 27 and sub-section (1) is not responsible for the personal liability of the partner for his wrongful act but a partner shall not responsible for the wrongful act of any other partner of the LLP formation.
Holding out
The person who by words spoken or written or by conduct represents himself to be as a partner in a limited liability partnership who has on the faith of any such representation gives credit to the LLP.
The credit received by the LLP Relationships as the results of such representation, the LLP should, without bias to the liability of the person, so representing by himself to be a partner be liable to the extent of credit received by it.
Unlimited Liability in case of fraud activities
If any fraudulent activity raised by the LLP, partners or any others in an LLP, without knowing the LLP is punishable to the same extent of responsibilities given to the members.
The person who involved in such fraudulent cases may get punishable with fine of 50 thousands and it may extend to five lakh rupee with imprisonment.
Note
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