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MCA To Bring More Control On Limited Liability Partnerships (LLP)

  • March 5, 2024

The Central Government ( Ministry of Corporate Affairs) is going to extend some of the controlling provisions contained in the Companies Act 2013 to Limited Liability Partnerships (LLP)  which are hitherto applicable to companies only . This is to bring more control on the functioning of Limited Liability Partnerships (LLP) as corporate entities.

The  following sections  of the Companies Act 2013 is going to be applicable to Limited Liability Partnerships (LLP)  soon:

1.Sub- sections (1) to (11) of section 90  – for disclosure of  significant beneficial owners in LLPs

2. Sub- sections (1) and (2) of section 164 ­ – for disqualifying  individuals to be or become designated partners of LLPs

3. Sub-sections (1) and (3) to (6) of section 165 – for limiting the number  to  become designated partner in LLPs .

4. Sub-section (1) to (3) of section 167  – for vacation of office of designated partner

5. Sub-section (5) of section 206 & Sub-section (3) of section 207- for  enabling government to call for information, inspect books and conduct inquiries in the functioning of LLPs

6. Sub-sections (1) to (3) of section 252 – for  revival of LLPs  by filing appeal to National Company Law  Tribunal ( NCLT) and

7.  Sub-sections (1) to (4) of Section 439 – for making offences under the Limited Liability Partnership Act 2008  to be non-cognizable.