Question 5 (b)

Who can be a partner in an LLP; disqualifications; how one becomes a partner

6 marks

Time to write
About 12 minutes

From an older CBCS paper

Question

Question 5 (b) · 6 marks

In an LLP, who can become a partner? For becoming a partner, what are the disqualifications? How can a person become a partner of an LLP?

Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.

Before you write

Read off the question and its marks

12 minfor 6 marks

Read from the question

  • Who…?What are the…?How…?3 asks, each with its own marks below. Answer all 3.

Write it in this order

  1. Read; underline the asks; jot your points 1 min
  2. 1 Who can be a partner 2 marks 3 min
  3. 2 Disqualifications 2 marks 3 min
  4. 3 How a person becomes a partner 2 marks 3 min
  5. Check: every ask answered, key terms underlined 2 min

Short on time? Trim steps 1–3 evenly rather than skip one: each is capped at its own marks.

Try it first. About 12 minutes for 6 marks. Write it out, then open the solution.

Solution

Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.

Who can become a partner. Under section 5 of the Limited Liability Partnership Act, 2008, any individual or body corporate may be a partner in an LLP. Every LLP must have at least two partners (s. 6), and the Act sets no maximum number.

Disqualifications (s. 5). An individual is not capable of becoming a partner of an LLP if:

  1. a court of competent jurisdiction has found him to be of unsound mind, and that finding is still in force;
  2. he is an undischarged insolvent; or
  3. his application to be adjudged insolvent is still pending.

How a person becomes a partner (s. 22). On the incorporation of an LLP, the persons who subscribed their names to the incorporation document become its partners; any other person may become a partner by and in accordance with the LLP agreement. The mutual rights and duties of the partners, and between the LLP and its partners, are governed by the LLP agreement, which (with any changes) is filed with the Registrar (s. 23).

Where the 6 marks sit

#ComponentMarks
1Who can be a partner2
2Disqualifications2
3How a person becomes a partner2
Total6
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