Limited Liability Partnership (LLP):
It is a new corporate structure that combines the advantages of limited liability of a company at a low compliance cost and the flexibility of a partnership and. It is an alternative corporate business vehicle that provides the benefits of limited liability of a company, but it also allows its members to flexibly organize their internal management on the basis of a mutually arrived agreement just like in a partnership firm.
It would be generally useful for small and medium enterprises, and particularly for the enterprises in services sector, owing to flexibility in its structure and operation. Internationally, LLPs are the preferred vehicle of business, especially for the service industry and for activities involving professionals.
The LPP IS governed by the provisions of the Limited Liability Partnership Act 2008.
The features of LPP are as follows: -
• Any two or more persons, associated for carrying on a lawful business with a motive to earn profit, may subscribe their names to an incorporation document and fill the same with the Registrar to form a LLP. The LLP shall be a body corporate and a legal entity separate from its partners.. The LLP will have perpetual succession.
• The mutual rights and duties of partners of an LLP inter se and those of the LLP and its partners shall be governed by an agreement between partners or between the LLP and the partners subject to the provisions of the LLP Act 2008. This act provides the flexibility to devise the agreement as per their choice.
• No partner would be liable on account of the independent or un-authorized actions of other partners or their misconduct. The LLP will be a separate legal entity, and it will be liable to the full extent o...
... middle of paper ...
... has to meet certain insurance requirements. LLPs with sufficient assets do not have to get insurance. Such restrictions are imposed by the state to ensure that the company can hold to the claims made against the business.
6. Admission of new partner: A supplementary agreement should contain details of new partners. His contribution should be created and accordingly the existing partners should revise the contribution held by them. Such changes have to be filed with the Registrar of Companies on whose jurisdiction the registered office of the LLP was situated.
7. Permission of Foreign Direct Investment (FDI) in LLP: FDI in LLP is only permitted through Government route. FDI in LLP is not permissible under automatic route. Also FDI in LLP is allowed to only those sectors through Government route where 100% FDI is allowed under the FDI policy under automatic route.
Partnership – “A legal entity formed by two or more co-owners to operate a business for profit.” (Longenecker, Petty, Palich, Hoy, Pg. 202) In a partnership, the advantage for the owners is the capability to reduce the workload and the financial burden, especially if each partner has management skills that enhances the business. The disadvantages of a partnership such as personal conflicts and leadership expectations, therefore this organizational form should only be chosen once all other options have been considered.
persons as partnership change to sole proprietorship due to personal case. This will affects the
Liability – The general partners are all responsible for the debts and obligations of the business, but the limited partners are only liable up to their invested amount.
All shareholders have limited liability. They are only liable for the amount they have put into the business. If a company closes down, shareholders can only lose the money they have invested. They will not be liable for anything else. Limited companies are owned by their shareholders.
Max was negligent in failing to warn of Joe of the hazardous door, which caused Joe’s injury.
Life insurance is legally enforceable contract issued by insurer based on the payment of premiums. The well understanding the legal aspects of the life insurance contract will give a further benefits to insured as well as beneficiaries to impose their rights to the insurance contract. Insurance contract include insurer, insured, policyowner, and beneficiary. Insurer must be licensed in each states. Although insurer is the first party of the insurance contract, their power enforcing to insured is limited by the state law. Insured and policyowner is not always but can be a same person. For example, when parents want to insure their children, policyowner and beneficiaries will be either parents. At the event of insured’s death, the policy of the
Public limited companies have advantages that they can expand their organisations into different businesses and conglomerates. This protects the firm from dealing in one market. Ø The organisation can be on the stock exchange and this enables them to offer shares for sale publicly. Due to this PLC's can acquire ready capital for further development if they ar... ...
For Lawyers law firms are either a Partnership or an Association. A partnership some Lawyers are partners with equal shares and blanket insurance, so if a partner fails a care it reflects on all partners, and associates carry their own insurance and are solely responsible for their failures. In an association, one Lawyer is the owner and has their own insurance, and the associate has their own insurance and failures only reflect on the person handling the case.
1. Because the additional terms become part of the contract,In the battle of the forms, all additional terms become part of the contract unless they are promptly objected to, are material changes or are banned by the offer. Katie sent Phil a text asking him to pick up and deliver her new boots. Phil agreed but only if Katie agreed to go out on a date with him and Katie refused. These additional terms (the date) did not become part of the agreement because Katie refused Phil’s advancement.
Below I have set out a table to show the Advantages and Disadvantages of a public limited company. ADVANTAGES DISADVANTAGES Shares offered for sale on the stock exchange, so that large amounts of capital can be generated. Shareholders protected by limited liabilit... ... middle of paper ... ...ibit the already efficient practices from continuing.
The Licensee’s Senior Management is responsible for approving the AML/SAR Policy and associated initiatives. Senior Management also oversees the Compliance Officer and overall performance of the initiative associated with the AML/SAR Policy, including day-to-day operations, training, monitoring, and updates. Senior Management is responsible for resolving any conflicts and providing interpretations that are escalated by the Compliance Officer.
[7] Cavendish Lawcards Series (2002) Company Law (3rd edn), p.15 [8] [1976] 3 All ER 462, CA. [9] Griffin, S. (1996) Company Law Fundamental Principles (2nd edn), p.19 [10] [1990] Ch 433. [11] Lecture notes [12] Lecture notes [13] [1939] 4 All ER 116.
Before a partnership formation is imminent, the business needs to decide on which type of partnership to form. There are three types of partnerships: (1) general partnerships, (2) limited partnerships, and (3) joint ventures. All three partnerships contain two or more owners, but all partners assume equal division of ownership, liabilities, and profits in a general partnership. Limited partnerships offer limited liability protection based on each partner’s contribution percentage. Joint ventures are classified as general partnerships with limited existence periods. Once a type of partnership has been determined, the business fulfills a series of requirements before the partnership can be successfully formed. The first step is to register
“…separate legal entity possessed of separate legal rights and liabilities so that the rights of one company in a group cannot be exercised by another company in that group …”
6.convenience or burden: When operating a LLC there is no personal liability to the partners or owners.