CA Foundation · Business Laws · The Limited Liability Partnership Act, 2008
Lotus Design LLP is registered in Jaipur. Its partner Tara wishes to leave the LLP. Which statement correctly describes how a partner may cease to be a partner under the LLP Act, 2008?
A partner like Tara may cease to be a partner by giving reasonable written notice to the other partners, subject to the LLP agreement. Cessation is not limited to death, does not need the Registrar's resolution and does not require winding up of the LLP.
- AOnly by a resolution of the Registrar of Companies
- BOnly on the death of the partner
- CBy giving reasonable notice in writing to the other partners, subject to the LLP agreementCorrect
- DOnly after the LLP is wound up
Explanation
A partner may cease to be a partner by giving reasonable notice in writing to the other partners, as the Act and the agreement provide. Cessation also occurs on death, insolvency or incapacity, but it is not limited to these, and winding up is not required. The Registrar does not approve resignations.
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