THE LIMITED LIABILITY PARTNERSHIP ACT, 2009 – AN OVERVIEW
BACKGROUND The Limited Liability Partnership (LLP) Act, 2008 introduced the well renowned form of business organization – The LLPs into India. The Act considered the suggestions of the various Parliamentary Standing Committees such as the Naresh Chandra Committee, J.J.Irani Committee and the Abid Hussain Committee. The Act was notified on 31st March 2009, and is effective from 1st April 2009. KEY FEATURES OF THE LIMITED LIABILITY PARTNERSHIP ACT, 2008 a) LLP is a separate legal entity separate from its partners, can own assets in its name, sue and be sued. b) LLP has a perpetual succession, and remains unaffected by any change in the constitution of its partners. c) The management of the LLP is done through its designated partners. d) One partner is not responsible or liable for another partner’s misconduct or negligence. e) Minimum of 2 partners are required to incorporate an LLP. At least one partner should be a resident of