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    Question

    If the number of partners in an LLP is reduced below 2

    and LLP carried out business for more than 6 months_____.
    A LLP should immediately cease business Correct Answer Incorrect Answer
    B LLP still can carry out business for further 6 months. Correct Answer Incorrect Answer
    C The only partner shall be personally liable for obligations of LLP incurred during that period. Correct Answer Incorrect Answer
    D The only partner shall not be personally liable for obligations of LLP during that period Correct Answer Incorrect Answer
    E The only partner shall not be liable for obligations of LLP after a period of 6 months. Correct Answer Incorrect Answer

    Solution

    LLP Act S. 6. Minimum number of partners. (1) Every limited liability partnership shall have at least two partners.   (2) If at any time the number of partners of a limited liability partnership is reduced below two and the limited liability partnership carries on business for more than six months while the number is so reduced, the person, who is the only partner of the limited liability partnership during the time that it so carries on business after those six months and has the knowledge of the fact that it is carrying on business with him alone, shall be liable personally for the obligations of the limited liability partnership incurred during that period.

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