Contribution meaning

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Harshita

Harshita (Querist)
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21 November 2017 What does the word 'Contribution' actually mean according to LLP Act?

Amitav

Amitav (Expert)
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22 November 2017 The obligation of a partner to contribute shall be as per the LLP Agreement. Contribution may consist of tangible or intangible, movable or immovable property or other benefit to the LLP including contract of services performed or to be performed. The contribution of each partner along with the nature of contribution has to be disclosed in the accounts of the LLP. The monetary value of the non-monetary contribution is to be valued by a Chartered Accountant or a Cost Accountant or an Approved Valuer. A creditor of an LLP, who extends credit relying on the obligation of the partner to make contribution as recorded in the LLP Agreement, may enforce such obligation against the partner.