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CSEET · Business Laws and Management · Elements of Law relating to Partnership and Limited Liability Partnership

Anita, a Company Secretary, signs the compliance statement under section 11(1)(c) for forming an LLP, though she does not believe it to be true. Which consequence follows under the Act?

She is punishable with imprisonment for a term which may extend to two years and with fine of not less than ten thousand rupees, which may extend to five lakh rupees. This applies to a statement known to be false or not believed to be true.

  1. AImprisonment up to two years and fine of at least ten thousand rupees, extending to five lakh rupeesCorrect
  2. BImprisonment up to six months and fine up to one thousand rupees
  3. COnly a warning from the Registrar, with no penalty
  4. DFine only, of not less than five lakh rupees

Explanation

Section 11(3) punishes a person making a statement known to be false or not believed to be true with imprisonment up to two years and fine not less than ten thousand rupees, extendable to five lakh rupees. The other options misstate the punishment.

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