Question 4 OR (b)

Conversion of a partnership firm into an LLP

6 marks

Time to write
About 12 minutes

From an older CBCS paper

Question

Question 4 OR (b) · 6 marks

Discuss the procedure for conversion from partnership firm into 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

  • procedureA process: the steps in order, one heading each.

Write it in this order

  1. Read; underline the asks; jot your points 1 min
  2. 1 Procedure 4 marks 7 min
  3. 2 Effect of conversion 2 marks 3 min
  4. Check: every ask answered, key terms underlined 1 min

Short on time? Trim steps 1 and 2 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.

Procedure (s. 55 and the Second Schedule):

  1. A firm may apply to convert only if the partners of the LLP comprise all the partners of the firm and no one else.
  2. It files with the Registrar a statement by all its partners, with the firm's name and registration number (if any) and the date of its registration under the Indian Partnership Act, 1932, together with the incorporation document and statement referred to in section 11.
  3. The Registrar registers the documents and issues a certificate of registration stating the date from which the LLP is registered; where the firm was registered under the Indian Partnership Act, 1932, the LLP informs the Registrar of Firms with which it was registered of the conversion within fifteen days.
  4. The Registrar may refuse to register if not satisfied with the particulars, subject to an appeal to the Tribunal.

Effect of conversion (para 7): there is an LLP by the name in the certificate; all the firm's property, assets, rights, liabilities and undertaking vest in the LLP without further assurance; and the firm is deemed dissolved and, if it was registered under the Indian Partnership Act, 1932, removed from the records of the Registrar of Firms.

Where the 6 marks sit

#ComponentMarks
1Procedure4
2Effect of conversion2
Total6
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