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Unless the Central Government has removed the disqualification by notification, which person is barred from appointment as a designated partner under rule 9(1) of the Limited Liability Partnership…

Question and options

Unless the Central Government has removed the disqualification by notification, which person is barred from appointment as a designated partner under rule 9(1) of the Limited Liability Partnership Rules, 2009?

  1. A person adjudged insolvent four years before the proposed appointment

  2. A person adjudged insolvent seven years before the appointment and since discharged

  3. A person convicted of an offence involving moral turpitude and only fined

  4. A person who is already a designated partner in another LLP

Answer and explanation

Correct answer: A - A person adjudged insolvent four years before the proposed appointment

Rule 9(1)(a) of the Limited Liability Partnership Rules, 2009 bars a person who has at any time within the preceding five years been adjudged insolvent, so an adjudication four years back disqualifies. An adjudication seven years back, followed by discharge, lies outside that window. A conviction for moral turpitude disqualifies only where imprisonment of at least six months was imposed, and holding a designated-partner post in another LLP is no bar.

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