Skip to content

CMA Intermediate · Business Laws and Ethics · Limited Liability Partnership Act, 2008

An LLP files the Tribunal's compromise order with the Registrar late. Which describes the penalty under the Act as amended w.e.f. 1-4-2022 for the LLP?

The LLP is liable to a penalty of Rs 10,000 plus Rs 100 for each day after the first during which default continues, capped at Rs 1 lakh. Each designated partner faces the same scale but capped at Rs 50,000.

  1. ARs 10,000 plus Rs 100 per day after the first day, subject to a maximum of Rs 1 lakhCorrect
  2. BRs 10,000 plus Rs 100 per day after the first day, subject to a maximum of Rs 50,000
  3. CRs 50,000 plus Rs 1,000 per day, with no maximum
  4. DRs 10,000 plus Rs 100 for every day including the first, subject to a maximum of Rs 1 lakh

Explanation

The LLP and every designated partner face Rs 10,000 plus Rs 100 for each day after the first during which default continues. The cap is Rs 1 lakh for the LLP and Rs 50,000 for each designated partner. The Rs 50,000 cap applies to designated partners, not the LLP.

Did you get it right without looking?

One question tells you little. A timed set on Limited Liability Partnership Act, 2008 shows your real accuracy, how long you take and where you lose marks.

Practise Limited Liability Partnership Act, 2008Free diagnostic mock

More Limited Liability Partnership Act, 2008 questions