CMA Intermediate · Financial Accounting · Accounting of Limited Liability Partnership
Under the Limited Liability Partnership Act, 2008, which of the following may convert into a limited liability partnership in accordance with the Act and the relevant Schedule?
An unlisted public company may convert into an LLP under Section 57 of the LLP Act, 2008, following the Fourth Schedule. Firms and private companies also have conversion routes, but listed public companies are not covered by the conversion provisions.
- AA listed public company
- BAn unlisted public companyCorrect
- CA society registered under any law
- DA sole proprietorship concern
Explanation
The Act provides conversion for a firm (Section 55), a private company (Section 56) and an unlisted public company (Section 57). A listed public company is not covered by these provisions, and neither a sole proprietorship nor a society is mentioned in the text provided.
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