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CS Executive · Setting Up of Business, Industrial and Labour Laws · Limited Liability Partnership

A Company Secretary engaged in forming an LLP signs the compliance statement under section 11(1)(c) though he does not believe it to be true. What is the consequence under the LLP Act, 2008?

He is punishable with imprisonment up to two years and a fine of not less than ten thousand rupees, extending to five lakh rupees, because a statement he does not believe to be true falls under the false-statement provision.

  1. APenalty of five hundred rupees per day up to fifty thousand rupees
  2. BImprisonment up to two years and fine of at least ten thousand rupees extending to five lakh rupeesCorrect
  3. COnly a fine up to five lakh rupees, without imprisonment
  4. DImprisonment up to six months and fine up to ten thousand rupees

Explanation

Section 11(3) punishes a person who makes a statement he knows to be false or does not believe to be true with imprisonment up to two years and fine of not less than ten thousand but up to five lakh rupees. The daily penalty relates to registered office defaults, not this.

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