Out of the following statements, which are NOT true in respect of a Limited Liability Partnership? A.…
Under Limited Liability Partnership law (Section 7 of the Indian LLP Act, 2008 / Section 8 of the UK LLP Act, 2000), every LLP must have at least two designated…
Choose your answer
Out of the following statements, which are NOT true in respect of a Limited Liability Partnership?
A. There must be at least one ‘Designated member’ at all times.
B. Designated members do not have the same rights and duties as any other member.
C. There are no specific requirement to have any non-designated members.
D. A Limited Liability Partnership may be established such that all members are considered to be designated members
Answer and explanation
Correct answer B
Under Limited Liability Partnership law (Section 7 of the Indian LLP Act, 2008 / Section 8 of the UK LLP Act, 2000), every LLP must have at least two designated partners/members at all times (making statement A false), and designated members enjoy the same rights and duties towards the LLP as any other member alongside additional compliance responsibilities (making statement B false). Statements C and D are true, so A and B only are NOT true.
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UGC NET Commerce