Star LLP is a limited liability partnership engaged in the business of eco-friendly product manufacturing. The LLP was initially established with…

CA Intermediate · Corporate and Other Laws · MTP · May 2025
Star LLP is a limited liability partnership engaged in the business of eco-friendly product manufacturing. The LLP was initially established with three partners: Apeksha, Rajesh, and Riverview Limited, a corporate entity. Apeksha and Rajesh are the designated partners, with Apeksha being a resident in India. Riverview Limited has appointed Anil, an individual, as its nominee to act on its behalf. After a few years, Rajesh decides to retire, leaving Apeksha and Riverview Limited as the remaining partners. Due to some administrative oversight, Star LLP continues its operations without appointing a new partner. This situation persists for seven months, with Apeksha being aware of the reduced number of partners. During this period, Star LLP enters into several contracts and incurs significant financial 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) Dissolved the LLP
(B) Continue operating with one designated partner
(C) Appoint at least one body corporate which should be a foreign company
(D) Appointed at least one more partner who should also be a designated partner, as every LLP should have at least two designated partners

Suggested Answer and Working Notes:

Correct Answer: Option (D)

Appointed at least one more partner who should also be a designated partner, as every LLP should have at least two designated partners

Topics: The Limited Liability Partnership Act, 2008, Companies Incorporated outside India

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