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

Meera and Farid are the two designated partners of Lotus Crafts LLP, which has four partners in all. The LLP has just been incorporated. A friend asks who is responsible for filing the LLP's annual return and Statement of Account and Solvency with the Registrar. Which statement states the correct legal position under the LLP Act, 2008?

Designated partners are responsible for filing the LLP's annual return and Statement of Account and Solvency with the Registrar, because the Act makes them answerable for compliance and filings. Profit share or being an ordinary partner does not carry this duty, and the Registrar does not file for the LLP.

  1. AOnly the partner holding the largest profit share is responsible for the filings
  2. BThe designated partners are responsible for filing the annual return and the Statement of Account and SolvencyCorrect
  3. CEvery partner must separately sign and file the documents with the Registrar
  4. DThe Registrar prepares and files them on behalf of the LLP

Explanation

Under the LLP Act, designated partners are responsible for the doing of all acts, matters and things required to be done by the LLP, including filing of the annual return and Statement of Account and Solvency. Profit share does not determine this duty, and the Registrar does not file on behalf of the LLP.

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