Rahul and Meenakshi, two young entrepreneurs, founded “Educom Innovators LLP” under the Limited Liability Partnership Act, 2008, with a focus on…

CA Intermediate · Corporate and Other Laws · MTP · January 2025
Rahul and Meenakshi, two young entrepreneurs, founded “Educom Innovators LLP” under the Limited Liability Partnership Act, 2008, with a focus on providing digital education solutions. Rahul brought technical expertise, while Meenakshi managed the business operations. According to the LLP Agreement, both contributed equally and shared profits equally. After two years of growth, they decided to admit Anshul, an industry expert, as a partner to expand their reach. Anshul agreed to contribute additional capital and bring industry contacts. However, shortly after joining, Anshul discovered that certain key compliance filings, including Form 11 (Annual Return) and Form 8 (Statement of Accounts and Solvency), were pending. Concerned, Anshul wanted to understand his liability and insisted that the LLP immediately address the compliance issues. Meanwhile, Rahul proposed to amend the LLP Agreement to reflect Anshul's new profit-sharing ratio and allocate specific decision-making powers to him. As they worked through these matters, they consulted a legal advisor to understand how the Limited Liability Partnership Act, 2008, impacted their responsibilities, liabilities, and compliance obligations. On the basis of above facts and by applying applicable provisions of the Limited Liability Partnership Act, 2008 and the applicable Rules therein, choose the correct answer (one out of four) of the following Multiple Choice Questions (MCQs 6-8, of 2 marks each) given herein under:
(A) Anshul has no liability for past compliance lapses since he was not a partner when they occurred.
(B) Anshul shares equal liability for past compliance lapses because he is now a partner in the LLP.
(C) Anshul is only liable if the LLP Agreement specifically assigns responsibility to him for compliance.
(D) Anshul's liability for past compliance is limited to his capital contribution in the LLP.

Suggested Answer and Working Notes:

Correct Answer: Option (A)

Anshul has no liability for past compliance lapses since he was not a partner when they occurred.

Topics: The Limited Liability Partnership Act, 2008, Registration of Charges

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