Business Daily from THE HINDU group of publications
Saturday, Dec 16, 2006
ePaper
Business Daily from THE HINDU group of publications Saturday, Dec 16, 2006 ePaper |
|
|
|
|
|
|
|
Corporate
-
Company Law Limited liability partnership Bill introduced in Rajya Sabha Our Bureau
New Delhi , Dec. 15 The Government has come a step closer towards enacting legislation on limited liability partnership (LLP), with the Company Affairs Minister, Mr Prem Chand Gupta, introducing the LLP Bill, 2006 in the Rajya Sabha on Friday.LLP is viewed as an alternative corporate business vehicle that provides the benefits of limited liability and also allows its members the flexibility of organising their internal structure as a partnership based on a mutually arrived agreement. "It will be a path-breaking legislation that would be a hybrid between a limited liability company and a partnership firm. It will particularly benefit entrepreneurs, professionals and enterprises providing services," Mr Gupta told Business Line after introducing the Bill. The proposed Bill does not restrict the benefit of LLP structure only to certain classes of professionals and will be available for use by any enterprise that fulfils the requirements of this Act. LLP structure is available in countries such as the UK, the US, Australia, Singapore, etc. The LLP Bill 2006 is broadly based on the UK and Singapore LLP Acts. As per this Bill, LLP would be a body corporate and a legal entity separate from its partners. It would have perpetual succession and the Indian Partnership Act would not be applicable to LLPs. However, other entities may convert themselves to LLP in accordance with the proposed legislation.
More Stories on : Company Law
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|