CS Executive · Setting Up of Business, Industrial and Labour Laws · Limited Liability Partnership
Mehta Foods Pvt Ltd wants to amalgamate with Mehta Foods LLP under a scheme sanctioned by the Tribunal under the LLP Act's reconstruction provisions. What is the legal position?
Such an amalgamation is not permitted. The LLP Act's reconstruction and amalgamation provision expressly states that a limited liability partnership shall not be amalgamated with a company, regardless of creditor consent or whether the company is private.
- AAllowed if the Registrar issues a report
- BAllowed if three-fourths of the creditors agree
- CNot allowed, because an LLP shall not be amalgamated with a companyCorrect
- DAllowed if the company is a private company
Explanation
The Explanation to section 62 states that a limited liability partnership shall not be amalgamated with a company. Creditor approval or private status does not override this bar.
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