CMA Intermediate · Business Laws and Ethics · Limited Liability Partnership Act, 2008
Zenith Services LLP has made default in filing its Statement of Account and Solvency with the Registrar for each of the last five consecutive financial years. Which consequence does the Act specifically provide?
Default in filing the Statement of Account and Solvency or annual return for any five consecutive financial years is a ground on which the Tribunal may wind up the LLP. Winding up needs a Tribunal order and is not automatic.
- AThe LLP is automatically dissolved without any order
- BThe LLP may be wound up by the TribunalCorrect
- CIts partners lose limited liability
- DThe LLP's name is changed by the Registrar to an LLP-default name
Explanation
Section 64(e) lists default in filing the Statement of Account and Solvency or annual return for any five consecutive financial years as a ground on which the Tribunal may wind up the LLP. The Act says 'may', so winding up is not automatic and requires a Tribunal order.
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