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

Kiran is a partner in Zenith Analytics LLP. He ceases to be a partner by giving notice, and the LLP agreement is silent on the notice period. Separately, the other partners had never agreed in writing about any retirement procedure. Under the LLP Act, 2008 and the default position in the First Schedule, how may Kiran cease to be a partner by his own act?

A partner can cease to be a partner by giving at least 30 days' written notice to the other partners where the LLP agreement is silent. No unanimous consent, court order or winding up is needed, because the Act itself allows exit by notice.

  1. AOnly with the unanimous written consent of all other partners
  2. BOnly after a court order permitting retirement
  3. CBy giving not less than 30 days' notice in writing to the other partners, where the agreement is silentCorrect
  4. DOnly after the LLP is wound up

Explanation

The Act provides that a partner may cease to be a partner by giving not less than 30 days' notice in writing to the other partners, in accordance with the agreement. Where the agreement is silent, this 30-day written notice is the position. Consent or a court order is not required.

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