Resignation or Removal of Partner in LLP
RESIGNATION OR REMOVAL OF PARTNER IN LLP
Partners in the LLP are responsible for carrying out business of the LLP. A Partner in LLP can resign or can be removed for various reasons. Resignation or removal of Partner from LLP must be notified to the Registrar of Companies. The Resignation of partner is governed by LLP Agreement however Partner can resign from a LLP by providing notice of resignation in writing not less than 30 days to the LLP and other Partners of the LLP. In cases like death, insolvency or incompetency of a Partner or dissolution of the LLP, the Partner would automatically cease to be a Partner. A Partner in a LLP can also be removed by a majority of the other Partners in the LLP, if the LLP agreement expressly provides such powers.
LEGALRAJ will assist you to effectuate resignation or removal of Partner of LLP. The average time taken to file for resignation or removal of Partner is about 2 working days, subject to government processing time and client document submission.
What will you receive in Resignation or Removal or Partners in LLP package ?
1.Resignation Letter of the resigning partner
2. Resolution / consent for acceptance of his/ her resignation from the LLP
3. Relieving Letter to Partner from LLP
4. Filing of LLP Form 3 & 4 for change in the partnership of the LLP
What are the Duties and Rights of a Partner in the LLP ?
1. General Duties:
Partners of a LLP are bound to carry on the business of the LLP to the common advantage, to be just and faithful to each other, and to render true accounts and full information of all things affecting the LLP to any partner.
2. Rights of Partners:
All Partners have right to take part in the conduct of the business of the LLP and access to inspect and copy the book of accounts of the LLP.
3. Duty to Indemnify:
Every Partner of a LLP is required to indemnify the LLP for any losses caused to it by fraud in the conduct of the business of the firm.
4. Implied Authority:
The authority of a Partner to bind the LLP, in case of any transaction carried on, as in the usual way business is carried on by the LLP, binds the LLP.
5. Properties of LLP:
All property, rights and interest in assets (tangible or intangible) acquired or developed with the money of the LLP belong to the LLP.
What is the process for Resignation of Partner ?
Step 1: Preparing the Resignation Letter of the resigning partner
Step 2: Submission of the resignation letter to the partners of the LLP
Step 3: All the Partners accept the resignation by passing the resolution in their meeting
Step 4: File the LLP Form 3 & 4 for resignation and change in the LLP Agreement
The entire process for resignation of partner will take at least 2 to 4 working days from the receipt of all the necessary documents and filing with the ROC.
What Documents are required for Partner Resignation ?
- 1. Resignation letter of the Resigning Partner
- 2. Revised and reinstated LLP Agreement
How LegalRaj will help with resignation of partner ?
1. Consultation: We will review your LLP Agreement to determine the course of action for resignation or removal of Partners or Designated Partner in the LLP. As per complexities involved, we will assist you with the procedure for resignation or removal of Partners or Designated Partner and matters related thereto.
2. Partners’ Resolutions: Then we will provide timelines, documents and do the compliances for you.
3. Filing: We will timely file applicable returns, documents and other formalities with the Ministry of Corporate Affairs to effectuate resignation or removal of Partners or Designated Partner.