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

Kiran Ventures LLP has two designated partners. One of them, Pooja, resigns. The LLP has only one designated partner left, who is Sameer. Which statement correctly reflects the LLP Act, 2008 and the rules on designated partners?

The LLP must fill the vacancy within 30 days so that it again has at least two designated partners, one of them resident in India. One remaining designated partner is not sufficient, and the vacancy does not cause automatic winding up or dissolution.

  1. AThe LLP continues without any need to act, because one designated partner is sufficient
  2. BThe LLP must appoint a new designated partner within 30 days of the vacancy so that it has at least two designated partners, at least one of whom is resident in IndiaCorrect
  3. CThe LLP must be wound up immediately upon the resignation
  4. DThe LLP has 6 months to appoint a new designated partner, and during this time the LLP is dissolved

Explanation

Every LLP must have at least two designated partners who are individuals, and at least one of them must be resident in India. If a vacancy reduces the number below two, the vacancy must be filled within 30 days. Immediate winding up or a 6 month window with dissolution is not provided. A single designated partner is not enough, so the first option is wrong.

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