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

Meera, Nikhil and Obaid are partners of Triveni Advisors LLP. Nikhil wishes to cease being a partner. The LLP agreement is silent on how a partner may cease to be a partner. What is the legal position under the LLP Act, 2008?

Nikhil may cease to be a partner by giving at least thirty days' written notice to the other partners. This is the default rule under the LLP Act when the LLP agreement does not provide otherwise. No court order, Registrar consent or unanimous approval is needed.

  1. ANikhil can cease to be a partner only by a court order
  2. BNikhil can cease to be a partner by giving 30 days' prior notice in writing to the other partnersCorrect
  3. CNikhil can cease to be a partner only with the written consent of the Registrar
  4. DNikhil can cease to be a partner only if all the other partners agree in a meeting

Explanation

Under the LLP Act, a partner may cease to be a partner by giving not less than thirty days' notice in writing to the other partners, subject to any agreement. Since the agreement is silent, this default applies. Court order, Registrar consent or unanimous agreement are not required.

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