Question 4 (a)

Certificate of incorporation as conclusive proof

9 marks

Time to write
About 18 minutes
Topic
LLP: incorporation, registration, name, office
Notes
Crux notes

Question

Question 4 (a) · 9 marks

"A certificate of Incorporation is conclusive proof that every legal requirement has been complied with". Explain this statement.

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

18 minfor 9 marks

Read from the question

  • ExplainTie the answer to the quoted statement: say what it means first, and come back to it at the end.

Write it in this order

  1. Read; underline the asks; jot your points 1 min
  2. 1 Explanation of the statement 2 marks 4 min
  3. 2 Incorporation and issue of the certificate 4 marks 7 min
  4. 3 Certificate as conclusive evidence; limits 3 marks 5 min
  5. Check: every ask answered, key terms underlined 1 min

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

Try it first. About 18 minutes for 9 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.

Explanation. The statement refers to the effect of the certificate the Registrar issues on registering an LLP. Under the Limited Liability Partnership Act, 2008, once the certificate is issued, the fact of incorporation cannot be questioned.

Incorporation. The incorporation document, in the prescribed form, states the LLP's name, its proposed business, the address of its registered office and the names and addresses of its partners and designated partners; a person who makes a statement of compliance knowing it to be false, or not believing it to be true, is punishable (s. 11(3)). When the requirements are met, the Registrar registers the document and, within 14 days, gives a certificate that the LLP is incorporated by the name specified; he may accept the statement of compliance as sufficient evidence that the subscription requirement of section 11(1)(a) has been complied with (s. 12).

Conclusive evidence. Under section 12(4), the certificate is conclusive proof that the LLP has been incorporated under the name it states. So once issued, the existence of the LLP as a body corporate cannot be challenged on the ground that some requirement of registration was not complied with. Any irregularity in the process is cured by the certificate, though a person who made a statement of compliance knowing it to be false, or not believing it to be true, remains punishable (s. 11(3)), and a name that resembles another's may still be ordered to be changed.

Where the 9 marks sit

#ComponentMarks
1Explanation of the statement2
2Incorporation and issue of the certificate4
3Certificate as conclusive evidence; limits3
Total9
Keyboard: ← → previous and next question, / search

Report a problemopens an email to admin@getkunji.com with the question ID850-Q4aalready filled in.