jayant kashinath watve (Surgeon) (24 Points)
14 November 2009I am interested in the formation of LLP. Can a LLP raise capital by
the way of equity? No clarification is found on this point in
comparison with company. Please clarify - Dr. Jayant Watve, Kolhapur
MOHIT MAHAJAN
(LCS, ACA)
(2050 Points)
Replied 15 November 2009
In my opinion a LLP can not raise capital by way of equity from public.
For detailed comparison b/n LLP and Co. refer following link. For your question regarding raising of capital refer Point 17-18 given in the link.
Sivanesh Rajendran
(Articled Assistant)
(49 Points)
Replied 15 November 2009
| Originally posted by :Sathyanarayanan. B.Com. CA PCC | ||
| " | Hey what question is this. Raising equity from public is allowed only for public limited company. LLP is partnership. 1. Formed by agreement and not by share certificate. 2. Partners are jointly and severally liable. Not possible. |
" |
I would like to make a correction in the above statement. In an LLP a Patener is not Joint and severally liable. That is what makes it different from a traditional partnership. So the second statement above is wrong.
CA Devanshi Gandhi (Ajani)
(FCA DISA Mcom CIFRS & LLB)
(9060 Points)
Replied 15 November 2009
u can not raise capital from equity
Punit Tibrewal
(student )
(1684 Points)
Replied 15 November 2009
| Originally posted by :Sathyanarayanan. B.Com. CA PCC | ||
| " | Hey what question is this. Raising equity from public is allowed only for public limited company. LLP is partnership. 1. Formed by agreement and not by share certificate. 2. Partners are jointly and severally liable. Not possible. |
" |
sir is absolutely right..!
CAclubindia
