Kishore, Kanshik, Yuvan and Bhora were partners in ABC & Associates LLP. Yuvan resigned from the firm effective from 11 th November, 2024 but…
CA Intermediate · Corporate and Other Laws · MTP · January 2025
Kishore, Kanshik, Yuvan and Bhora were partners in ABC & Associates LLP. Yuvan resigned from the firm effective from 11 th November, 2024 but this was not informed to the Registrar of Companies by the Limited Liability Partnership or Yuvan. Whether Yuvan will still be liable for the loss of firm of the transactions entered after 11 th November, 2024? Give your answer as per the provisions of the Limited Liability Partnership Act, 2008.
Suggested Answer and Working Notes:
(a) According to section 24 (3) , where a person has ceased to be a partner of a LLP (hereinafter referred to as “former partner”), the former partner is to be regarded (in relation to any person dealing with the LLP) as still being a partner of the LLP unless: (a) the person has notice that the former partner has ceased to be a partner of the LLP; or (b) notice that the former partner has ceased to be a partner of the LLP has been delivered to the Registrar. Hence, by virtue of the above provisions, as no notice of resignation was given to ROC, Yuvan will still be liable for the loss of firm of the transactions entered after 11 th November, 2024.
Topics: The Limited Liability Partnership Act, 2008
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