[Smruti Kulkarni and Manas Rohilla are 3rd year B.A., LL.B. (Hons.) students at the Gujarat National Law University, Gandhinagar] On 9th November 2023, the Ministry of Corporate Affairs (“MCA”) notified the Limited Liability Partnership (Significant Beneficial Owners) Rules, 2023, which mandate all Limited Liability Partnerships (“LLPs”) to identify and disclose their Significant Beneficial...
MCA’s New SBO Compliance Regulations for LLPs – A Futile Effort?
[Manya Sharma is a 3rd year B.A., LL.B. (Hons.) student at National Law University Odisha] The Ministry of Corporate Affairs (MCA) issued a notification dated 27 October 2023 introducing The Limited Liability Partnership (Significant Beneficial Owners) Rules, 2023 effective from November 10. These rules come in addition to MCA’s notification last year extending the applicability of section 90 of...
Fiduciary Duties and the Nature of an LLP
While the position of law in relation to the inter-se relationship between partners of a firm is fairly well-settled, there is no great clarity on similar issues arising in the context of LLPs. It is clear that the “double agency” rule of partnerships does not apply to LLPs: but, if LLPs are seen as a hybrid form of a partnership and a company, does the law impose any fiduciary duties on members...
FDI Guidelines to Apply to LLPs
Several posts here have discussed the introduction of the concept of Limited Liability Partnerships (“LLPs”) in India, and its treatment under the Indian legal regime. In another interesting development, the Government is now planning to bring LLPs into the scope of the FDI regime, in order the streamline the establishment of cross-border LLPs. LLPs are structurally more similar to corporate...
An Analysis of the LLP Act
A paper titled The Indian LLP Law: Some Concerns for Lawyers and CAs by Amit M. Sachdeva and Sachin Sachdeva has been posted on SSRN. Here is the extract: With a view to giving the entrepreneurs the necessary regulatory support, India enacted its first law on limited liability partnerships in December 2008, after almost two years of debate. An LLP, as a hybrid business form, coalesces the...
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