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CSEET · Business Laws and Management · Elements of Law relating to Partnership and Limited Liability Partnership

Which of the following statements about a limited liability partnership (LLP) under the LLP Act, 2008 is correct?

An LLP is a body corporate and a legal entity separate from its partners, and it has perpetual succession. Any change in its partners does not affect its existence, rights or liabilities, unlike an ordinary partnership firm.

  1. AIt is not a separate legal entity from its partners
  2. BIt is a body corporate and a legal entity separate from its partners, with perpetual successionCorrect
  3. CAny change in partners ends its existence
  4. DIt cannot have rights or liabilities distinct from the partners

Explanation

Section 3 states an LLP is a body corporate formed and incorporated under the Act and a legal entity separate from its partners. It has perpetual succession, and a change in partners does not affect its existence, rights or liabilities. The other options contradict this.

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