Skip to content

CA Foundation · Business Laws · The Limited Liability Partnership Act, 2008

Gaurav is a partner in Orion Legal LLP. He dies, and later another partner retires. Which feature of an LLP is illustrated by the business continuing without interruption?

The feature illustrated is perpetual succession. An LLP continues regardless of the death, retirement, insolvency or change of its partners, and its existence, rights and liabilities remain unaffected. This differs from a general partnership, which may dissolve on a partner's death.

  1. APerpetual succession, as changes in partners do not affect the existence, rights or liabilities of the LLPCorrect
  2. BUnlimited liability, as the surviving partners must pay all debts
  3. CDissolution on death, as in a general partnership
  4. DLimited life, as the LLP lasts only as long as its original partners remain

Explanation

An LLP has perpetual succession. Death, retirement, insolvency or change of partners does not affect its existence, rights or liabilities. Dissolution on death applies to a general partnership unless the deed says otherwise, not to an LLP.

Did you get it right without looking?

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

Practise The Limited Liability Partnership Act, 2008Free diagnostic mock

More The Limited Liability Partnership Act, 2008 questions