MNO LLP is under scrutiny by the Registrar for certain irregularities in its financial disclosures. The Registrar sends a written notice to Ms. A, a…
CA Intermediate · Corporate and Other Laws · MTP · May 2026
MNO LLP is under scrutiny by the Registrar for certain irregularities in its financial disclosures. The Registrar sends a written notice to Ms. A, a former designated partner of MNO LLP, asking her to provide specific details and explanations regarding certain transactions within 15 days. Ms. A fails to furnish the required information within the stipulated time. Thereafter, she submits an incomplete reply which the Registrar finds unsatisfactory. As per the provisions of the Limited Liability Partnership Act, 2008, discuss: (i) Whether the Registrar is empowered to seek information from Ms. A, despite her being a former designated partner. (ii) What further actions the Registrar can take when the information is not provided within the given time or is found unsatisfactory.
Suggested Answer and Working Notes:
According to section 38 of the Limited Liability Partnership Act, 2008, (1) In order to obtain such information as the Registrar may consider necessary for the purposes of carrying out the provisions of this Act, the Registrar may require any person including any present or former partner or designated partner or employee of a limited liability partnership to answer any question or make any declaration or supply any details or particulars in writing to him within a reasonable period. (2) In case any person referred to in sub-section (1) does not answer such question or make such declaration or supply such details or particulars asked for by the Registrar within a reasonable time or time given by the Registrar or when the Registrar is not satisfied with the reply or declaration or details or particulars provided by such person, the Registrar shall have power to summon that person to appear before him or an inspector or any other public officer whom the Registrar may designate, to answer any such question or make such declaration or supply such details, as the case may be. In view of the provisions of the Act and facts of the question: (i) Yes, the Registrar is empowered to seek information from Ms. A, despite her being a former designated partner. (ii) As Ms. A failed to furnish the required information within the stipulated time and also she submitted an incomplete reply which the Registrar finds unsatisfactory, the Registrar shall have power to summon her to appear before him or an inspector or any other public officer whom the Registrar may designate, to answer any such question or make such declaration or supply such details, as the case may be.
Topics: The Limited Liability Partnership Act, 2008
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