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Limited Liability Partnership Act, 2008


Schedule I - FIRST SCHEDULE

THE FIRST SCHEDULE

[See section 23(4)]

Provisions regarding matters relating to mutual rights and duties of partners and limited liability partnership and its partners applicable in the absence of any agreement on such matters

1.     The mutual rights and duties of the partners and the mutual rights and duties of the limited liability partnership and its partners shall be determined, subject to the terms of any limited liability partnership agreement or in the absence of any such agreement on any matter, by the provisions in this Schedule.

2.     All the partners of a limited liability partnership are entitled to share equally in the capital, profits and losses of the limited liability partnership.

3.     The limited liability partnership shall indemnify each partner in respect of payments made and personal liabilities incurred by him--

a.     in the ordinary and proper conduct of the business of the limited liability partnership; or

b.    in or about anything necessarily done for the preservation of the business or property of the limited liability partnership.

4.     Every partner shall indemnify the limited liability partnership for any loss caused to it by his fraud in the conduct of the business of the limited liability partnership.

5.     Every partner may take part in the management of the limited liability partnership.

6.     No partner shall be entitled to remuneration for acting in the business or management of the limited liability partnership.

7.     No person may be introduced as a partner without the consent of all the existing partners.

8.     Any matter or issue relating to the limited liability partnership shall be decided by a resolution passed by a majority in number of the partners, and for this purpose, each partner shall have one vote. However, no change may be made in the nature of business of the limited liability partnership without the consent of all the partners.

9.     Every limited liability partnership shall ensure that decisions taken by it are recorded in the minutes within thirty days of taking such decisions and are kept and maintained at the registered office of the limited liability partnership.

10.  Each partner shall render true accounts and full information of all things affecting the limited liability partnership to any partner or his legal representatives.

11.  If a partner, without the consent of the limited liability partnership, carries on any business of the same nature as and competing with the limited liability partnership, he must account for and pay over to the limited liability partnership all profits made by him in that business.

12.  Every partner shall account to the limited liability partnership for any benefit derived by him without the consent of the limited liability partnership from any transaction concerning the limited liability partnership, or from any use by him of the property, name or any business connection of the limited liability partnership.

13.  No majority of the partners can expel any partner unless a power to do so has been conferred by express agreement between the partners.

14.  All disputes between the partners arising out of the limited liability partnership agreement which cannot be resolved in terms of such agreement shall be referred for arbitration as per the provisions of the Arbitration and Conciliation Act, 1996.



Limited Liability Partnership Act, 2008 Back




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