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CA Intermediate · Corporate and Other Laws · The Limited Liability Partnership Act, 2008

Anand LLP has two partners, Sheela and Imran, who are also its only designated partners. The LLP agreement does not provide for any procedure on retirement. Imran wants to cease being a partner. Which statement is correct regarding the cessation of his partnership interest under the LLP Act, 2008?

Where the LLP agreement is silent, a partner may cease to be a partner by giving 30 days' written notice to the other partners. Court or Registrar approval is not required, and oral intimation does not satisfy the statutory requirement of written notice.

  1. AHe can cease to be a partner only with the consent of a court
  2. BHe may cease to be a partner by giving 30 days' notice in writing to the other partners, where the agreement is silentCorrect
  3. CHe cannot cease to be a partner unless the Registrar approves
  4. DHe ceases to be a partner immediately on oral intimation to Sheela

Explanation

Under the Act, a person may cease to be a partner in accordance with the LLP agreement, and where the agreement is silent, by giving 30 days' notice in writing to the other partners. No court or Registrar approval is needed. Oral intimation is not enough because notice must be written.

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