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CMA Intermediate · Financial Accounting · Accounting of Limited Liability Partnership

Under the LLP Act, 2008, which statement about the LLP agreement is correct?

The LLP agreement, along with any changes made in it, must be filed with the Registrar in the prescribed form and manner with the prescribed fees. It is not private, and changes cannot be left unreported.

  1. AIt must be kept private and need not be filed with the Registrar
  2. BAny change made to it need not be reported once the original is filed
  3. CIt may only be made after incorporation and never before
  4. DThe agreement and any changes made in it must be filed with the Registrar in the prescribed form, manner and feesCorrect

Explanation

Section 23(2) requires the LLP agreement and any changes made in it to be filed with the Registrar in the prescribed form, manner and with fees. Section 23(3) allows a written agreement before incorporation to bind the LLP if ratified by all partners after incorporation, so the third option is wrong.

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