Limited Liability Partnership – Govt Notifies Rules
GOVERNMENT has notified the Limited Liability Partnership Rules, 2009 effective from 01 04 2009. Highlights:
A person shall not be capable of being appointed as a designated partner of a limited liability partnership, if he
(a) has at any time within the preceding five years been adjudged insolvent; or
(b) suspends, or has at any time within the preceding five years suspended payment to his creditors and has not at any time within the preceding five years made, a composition with them; or
(c) has been convicted by a Court for any offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months; or
(d) has been convicted by a Court for an offence involving section 30 of the Act.
Every limited liability partnership shall keep books of accounts which are sufficient to show and explain the limited liability partnership's transactions and are such as to-
(a) disclose with reasonable accuracy, at any time, the financial position of the limited liability partnership at that time; and
(b) enable the designated partners to ensure that any Statement of Account and Solvency prepared under this rule complies with the requirements of the Act.
The books of account shall contain—
(a) particulars of all sums of money received and expended by the limited liability partnership and the matters in respect of which the receipt and expenditure takes place;
(b) a record of the assets and liabilities of the limited liability partnership;
(c) statements of cost of goods purchased, inventories, work-in-progress, finished goods and cost of goods sold; and
(d) any other particulars which the partners may decide.
NOTIFICATION NO. GSR 229(E), Dated: April 1, 2009