Skip to content

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

Alpha LLP and Beta LLP propose an amalgamation under a Tribunal-sanctioned scheme, with Alpha LLP to be dissolved without winding up. Which statement is correct under the LLP Act, 2008?

A transferor LLP can be dissolved without winding up by Tribunal order, but only after the Official Liquidator reports, on scrutinising its books and papers, that its affairs were not conducted prejudicially to partners or public interest. An LLP cannot be amalgamated with a company.

  1. AThe Tribunal may order dissolution of Alpha LLP only after the Official Liquidator reports that its affairs were not conducted prejudicially to partners or public interestCorrect
  2. BThe Tribunal must first wind up Alpha LLP before it can be dissolved
  3. CThe Tribunal may order the dissolution without any report, because the scheme was sanctioned
  4. DThe scheme may also provide for amalgamating Alpha LLP into a company

Explanation

Under section 62, the Tribunal may provide for dissolution without winding up of a transferor LLP, but only if the Official Liquidator, after scrutinising books and papers, reports that its affairs were not conducted prejudicially to partners or public interest. The Explanation bars amalgamation of an LLP with a company. So the other options are wrong.

Did you get it right without looking?

One question tells you little. A timed set on Limited Liability Partnership shows your real accuracy, how long you take and where you lose marks.

Practise Limited Liability PartnershipFree diagnostic mock

More Limited Liability Partnership questions