Friday, 3 May 2013

LLP-Procedure for Cessation of Partner

~A person can cease to be the partner of a Limited Liability Partnership in accordance with an agreement with the other partners and in accordance with the provisions of (Section 25) of Limited Liability Partnership Act, 2008.

~In case of absence of agreement with the other partners as to cessation of being a partner, a partner may resign by giving a notice in writing of not less than thirty days to the other partners of his intention to resign as partner.

~The LLP shall be required to (E-Form-4) of LLP Rules 2009, with Ministry of Corporate Affairs on with the following attachments : 

      a). Resignation letter of the partner;
      b). The Form must be duly certified by certifying authorities as specified in the form.

~This form shall be filed within 30 days of the admission of the new partner.

~The form shall be accompanied by such fees as may be prescribed.

~Further, a person shall also cease to be a partner of the Limited Liability Partnership:
      a). on his death or dissolution of the Limited Liability Partnership; or 
      b). if he is declared to be of unsound mind by a competent court; or 
      c). if he has applied to be adjudged as an insolvent or declared as an insolvent.

~The aforesaid provisions are dealt by section 25 of Limited Liability Partnership Act, 2008. Any person who ceases to be a partner of a Limited Liability Partnership, may himself file with the Registrar, the notice of his cessation if he has reasons to believe that the Limited Liability Partnership may not file the notice with the Registrar and in case of any such notice filed by a partner, the Registrar shall obtain a confirmation to that effect from the Limited Liability Partnership, unless such notice is itself filed by the Limited Liability Partnership.  

~Where no confirmation is given by the Limited Liability Partnership within a period of 15 days, the Registrar shall register the notice made by the person ceasing to be a partner.  

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