Which status disqualifies an individual from becoming a partner under section 5 of the Limited Liability Partnership Act, 2008?
Question and options
Which status disqualifies an individual from becoming a partner under section 5 of the Limited Liability Partnership Act, 2008?
Being a retired government employee
Being a partner in another LLP
Being an undischarged insolvent
Being a non-resident Indian
Answer and explanation
Under section 5 of the Limited Liability Partnership Act, 2008, an individual cannot become a partner if found to be of unsound mind by a competent court, if an undischarged insolvent, or if an application to be adjudicated insolvent is pending. Nothing in the section bars a non-resident or a person who is already a partner in another LLP; residence matters only for the requirement that one designated partner be resident in India.
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