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

Asha, Bharat and Chitra formed an LLP in Pune. Bharat later wrote to the LLP that he wished to stop being a partner, but the LLP agreement says nothing about how a partner may withdraw. What is the correct legal position under the LLP Act, 2008?

Bharat may cease to be a partner by giving at least 30 days' written notice to the other partners. Where the LLP agreement is silent, the Act supplies this default rule, and no approval from the Registrar, the Tribunal or the other partners is needed.

  1. ABharat cannot cease to be a partner unless the Registrar approves his exit
  2. BBharat may cease to be a partner by giving 30 days' notice in writing to the other partnersCorrect
  3. CBharat may cease to be a partner only after the Tribunal passes an order
  4. DBharat may cease to be a partner only if all other partners agree in writing

Explanation

Where the LLP agreement is silent, a partner may cease to be a partner by giving not less than 30 days' notice in writing to the other partners. No Registrar approval, Tribunal order or unanimous consent is needed. Options requiring those are therefore wrong.

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