Partnership in llp

Software Developer

Hi,

I wanted to know, what happens to an LLP if there are only 2 directors and one of them resigns?. Will it be closed or will it continue to exist as an establishment? Please advice.

 
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Advocate

According to Section 3(2) of the LLP Act, an LLP shall have perpetual succession.

Section 6(1) provides that every LLP shall have at least two partners.

According to Section 6(2), if at any time the number of partners of a LLP is reduced below two, and the LLP carries on business for more than six months while the number is so reduced, the person who is the only partner of the LLP during the time that it so carries on business after those six months and has the knowledge of the fact that it is carrying on business with him alone, shall be personally liable for the obligations of the LLP incurred during that period.


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Software Developer

Thank Mr. R.Ramachandran.

 
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