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CMA Intermediate · Financial Accounting · Accounting of Limited Liability Partnership

Under the LLP Act, 2008, on which ground may the Central Government cause a petition to be presented to the Tribunal for winding up an LLP on the basis of an inspector's report under section 49?

The Central Government may have a petition presented to the Tribunal on the ground that it is just and equitable to wind up the LLP, when a section 49 report shows it is expedient, as provided in Section 51 of the Act.

  1. AThat the LLP has made a loss for two consecutive years
  2. BThat it is just and equitable that the LLP be wound upCorrect
  3. CThat the LLP has changed its registered office
  4. DThat the designated partners have resigned

Explanation

Section 51 says that where the LLP is liable to be wound up, and it appears expedient from a report under section 49 by reason of the circumstances in section 43(3)(c)(i) or (ii), the Central Government may have a petition presented to the Tribunal on the ground that it is just and equitable that the LLP be wound up. Losses, office change or resignations are not stated grounds.

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