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CS Executive · Setting Up of Business, Industrial and Labour Laws · Limited Liability Partnership

Meera and Arjun, both residents of India, plan to form an LLP with two partners only. Their incorporation document is silent on who the designated partners are but states that each of the partners from time to time is to be a designated partner. Who will be the designated partners on incorporation?

Both Meera and Arjun become designated partners. When the incorporation document states that each partner from time to time is to be a designated partner, every partner automatically holds that status on incorporation, without any Registrar selection or later resolution.

  1. AOnly the partner who is older, as decided by the Registrar
  2. BBoth Meera and Arjun, since every partner is a designated partnerCorrect
  3. CNeither, until a separate resolution is passed by the partners
  4. DOnly a professional such as a company secretary appointed by the Registrar

Explanation

Under Section 7(2)(i)(b), if the incorporation document states that each of the partners from time to time is to be a designated partner, every such partner becomes a designated partner. So both Meera and Arjun are designated partners. The Registrar does not choose them, and no later resolution is needed.

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