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CS Executive · Setting Up of Business, Industrial and Labour Laws · Limited Liability Partnership

Zenith Traders LLP owes money to several creditors and proposes a compromise with them. Who may apply to the Tribunal to order a meeting of the creditors, when the LLP is not being wound up?

The LLP itself, or any of its creditors or partners, may apply to the Tribunal for a meeting of creditors on a proposed compromise. In a winding up the liquidator can also apply. The Act does not limit the application to designated partners, the Registrar or majority creditors.

  1. AOnly the designated partners acting together
  2. BThe LLP, or any creditor or partner of the LLPCorrect
  3. COnly the Registrar of Companies
  4. DOnly a creditor holding more than half of the debt

Explanation

Section 60(1) lets the Tribunal order a meeting on the application of the LLP or of any creditor or partner. If the LLP is being wound up, the liquidator may also apply. The other options wrongly narrow the class of applicants.

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