LLP query urgent please

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A newly formed LLP, converted from a company, has a partner wishing to leave. There is no specific time limit for existing partners to sell their shares to each other after the conversion. However, for up to five years post-conversion, at least 50% of the LLP's shares must remain with the original partners from the company. This condition allows a partner to leave and take their capital and accumulated profits, provided the 50% rule is met.

CA Parul Saxena

CA Parul Saxena (Querist)

04 February 2022 An LLP is just formed after conversion from Company..one partner wants to leave partnership..is there any time limit for sale of share between partners after conversion from company to LLP?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

04 February 2022 No time limit for sale between old partners.
Upto 5 years 50% share should be held by old partners.

CA Parul Saxena

CA Parul Saxena (Querist)

05 February 2022 A partner wants to leave after taking his share of capital and old accumulated profits of company...conversion is just made..so is it allowed or time limit?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

06 February 2022 Yes, it's allowed as 50% of shares will be held by old partners.

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