Which among the following is / are features of the Limited Liability Partnerships (LLPs) companies in India?
1. LLP is a legal entity separate from its partners
2. The partners in a LLP are liable for independent or unauthorised acts of other partners
3. Private companies are allowed in India to get converted into LLPs
Choose the correct option from the codes given below:
Limited Liability Partnership Act
Limited Liability Partnership (LLP)is an alternative corporate business vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in a flexible, innovative and efficient manner, providing benefits of limited liability while allowing its members the flexibility for organizing their internal structure as a partnership firm based on an agreement.
It is a form of business entity, which allows individual partners to be protected from the joint and several liabilities of partners in a partnership firm. The liability of partners incurred in the normal course of business does not extend to the personal assets of the partners. It is capable of entering into contracts and holding property in its own name.
A Limited Liability Partnership (LLP) would be able to fulfil the compliance norms with much greater ease, coupled with limitation of liability. The provisions of newly enacted Limited Liability Partnership Act, 2008 have been notified for implementation with effect from March, 2009. Limited Liability Partnership Rules, 2009 have been notified on 1st April, 2009.
LLP is a new business vehicle in the body corporate form and therefore a separate legal entity which limits the liability of the partners to their agreed contribution. Originally, the Ministry of Corporate Affairs had set up a single central Registry in Delhi for registration of LLP and filing of further returns with Registrar LLP online on its website namely, http://www.llp.gov.in.
In June, 2012, the Ministry has decentralized the Registry in twenty different locations, so as to enable wider penetration. Through the Notifications GSR 430(E) and 485(E) dated 5th June, 2012 the office of registrar of LLP has been decentralized. The Section 51, 63 to 65 of LLP Act, 2008 were notified in July, 2012.
The LLP (Winding up and Dissolution) Rules, 2012 were notified vide GSR No. 550(E) dated 10th July, 2012, through which the Central Government has made amendment in LLP Rules, 2009.
This question is a part of GKToday's Integrated IAS General Studies Module