Removal of Partner From LLP
February 11, 2019
LLP Due Date Compliance Calendar FY 2018-19
February 12, 2019
LLP Agreement Format for Removal of Partner
Limited Liability Partnership Agreement is key important legal document. It contain information about LLP Partners , share ratio , roles , nature of business , terms of removal of partner from LLP etc. For Removal of Partner this agreement need to be amended with below is LLP Agreement format for Removal of Partner from LLP. Generally Initial LLP agreement have terms & conditions for removal of partner from LLP. In this article we explained procedure for removal of partner from LLP. And LLP Agreement format for removal / resignation of Partner.
Content of LLP Agreement for Removal of Partner
- Removing / Resigning Partners Details
- Terms of Removal
- Details of Final settlement with removing / Resigning Partner
- Other terms
Who Can be Removed from LLP Partner
Provision for removal of Partner is governed by LLP Act 2008. Below are situation where LLP Partner can be removed from LLP
- On dissolution of the LLP
- On death of the Partner
- If the Partner is declared to be of unsound mind
- If the Partner is adjusted as an insolvent or declared as insolvent.
LLP Agreement Format for Removal of Partner
The Supplementary Limited Liability Partnership Agreement on Removal / Resignation of Partner from LLP
This Supplementary Liability Partnership Agreement is made on 0X/0X/20XX
Mr. ___________ residing at ______________________________ Which expression shall unless it be repugnant to the subject or contact there of including her legal hairs successors , nominees and permitted assignees an here after called the “ First Party / Continuing Partner.
Mr. ___________ residing at ______________________________ Which expression shall unless it be repugnant to the subject or contact there of including her legal hairs successors , nominees and permitted assignees an here after called the “ Second Party / Continuing Partner.
Mr. ___________________________ residing at ______________________________________________ Which expression shall unless it be repugnant to the subject or contact there of including her legal hairs successors , nominees and permitted assignees an here after called the “ Third Party / Removing/ resigning Partner.
Now the third party is interest to get Removing/ resigning from LLP and continue Limited Partnership firm by First and Second partner.
Nature of Business
To carry on the business of providing ___________________________________________________.
Consideration
And where as on the request of retiring partner consideration of Rs. 2X000/- will be given in ten days towards initial capital of Partnership.
Effective Date
The Retiring partner hereby agreed to get retired from LLP with effect from Data ___ of ____ year___.
Income Tax
Retiring partner will pay the income tax on his/her income & other settlement funds received. As per Income Tax Act 1961 , IT Tax payable by LLP will be paid by LLP.
Shares , Profit & Loss
It is declared that except as hereinafter provided the Retiring Partner shall have and bee hereby releases all his share, right, title and interest in the business of the LLP, its assets including goodwill, all licenses and permits held by the LLP, its outstanding dues and receivables and outstanding contracts, that the same shall belong to the Continuing Partners alone.
Business Continue
As agreed between retiring partner and continuing partners , Continuing Partners have been and will be entitled to continue to LLP Business.
Legal Formalities
For execution of this retirement of partner deed, The retiring partner agreed to execute necessary documents to give effect of retirement from LLP.
Intimate Registrar
Given legal effect to this agreement , necessary filing will be done at Registrar. LLP will appoint a Partner on behalf of LLP and Partner to execute legal formalities.
In witness whereof, the parties hereto have set and subscribed their hands, the day and year first here in above written.
Partner No. 1 : ________________
Partner No. 2: ________________
Partner No. 3: ________________
Witness A: ________________
Witness B: ________________
3 Step to Remove Partner from LLP
