New Register here for RBI, SEBI & NABARD strategy workshop! April 9 at 7 PM

    Question

    A partner's interest in an

    LLP_____.
    A Is transferable. Correct Answer Incorrect Answer
    B Is partly transferable. Correct Answer Incorrect Answer
    C Is transferable wholly. Correct Answer Incorrect Answer
    D Is not transferable. Correct Answer Incorrect Answer
    E Both B and C. Correct Answer Incorrect Answer

    Solution

    S.42. Partner’s transferable interest.—(1) The rights of a partner to a share of the profits and losses of the limited liability partnership and to receive distributions in accordance with the limited liability partnership agreement are transferable either wholly or in part. (2) The transfer of any right by any partner pursuant to sub-section (1) does not by itself cause the disassociation of the partner or a dissolution and winding up of the limited liability partnership. (3) The transfer of right pursuant to this section does not, by itself, entitle the transferee or assignee to participate in the management or conduct of the activities of the limited liability partnership, or access information concerning the transactions of the limited liability partnership.

    Practice Next