Limited Liability Partnership

This query is : Resolved

CA Anil Jain (Querist)
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06 November 2007 My query is ,
(1)
Whether in the LLP, partners are agent & Principal of one another, means whether they are liable to each other for their own work in the faith of firm?
(2)
Whether LLP is liable to make their A/c's audited even if it's turnover is less than 10/40 lacs like a limited liability company?

KAAPIL

KAAPIL (Expert)
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08 November 2007 LLP is a separate legal person. It is viewed as alternative corporate business vehicle. LLP is responsible for dets unless individual members have personally guaranteed a loan to the business. The members of LLP have limited liability. The LLP is liable for its debt to the full extent of its assets. Members are agents of the LLP and owe the duties of an agent.
LLP has same disclosure requiremtns as those of a company.

Ravikumar.G

Ravikumar.G (Expert)
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09 November 2007 Thanks Mr.Kapil.

CA Anil Jain

CA Anil Jain (Querist)
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13 November 2007 my Query is whether partners are responsible for other's partners act to the extent of his share ?

and
Whether LLP is required to get audited their a/c as LL company.

KAAPIL

KAAPIL (Expert)
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13 November 2007 Partners are not responsible for other's acts in LLP.
Accounts are to be audited same as Company.
I hope things are clear.

CA Anil Jain

CA Anil Jain (Querist)
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14 November 2007 Thank u very much for ur reply.
Now i have only one doubt that Members are the agent of the LLP. But whether partner's are agent & principal of one another like Old general unlimited partnership ?

Regards,
Anil Jain.