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Querry on LLP

sweta (trainee) (85 Points)

28 May 2010

Dear All,

Kindly advise whether is it a compulsion that on conversion of private company into LLP the contribution to be bought by the partners should be equal to the paid - up capital of the company. Kindly revert at the earliest.

Members views are appreciated

Warm Regards,

Sweta

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1 Replies

Madhusudan Kabra (knowledge seeker) (1779 Points)
Replied 28 May 2010

No, There is no such compulsion . the capital contribution of LLP will be decided by its partners

S. No	Conditions	LLP	Company	Partnership
9.	Remuneration to Managerial Personnel	Remuneration to partners will be determined on LLP Agreement	Remuneration to Directors of Public Companies are governed by Companies Act	The firm can pay remuneration to its partners
10.	Liability of Partners/ Members	Limited to the extent of contribution towards LLP	Limited to the amount of share capital agreed to be contributed on each share	Partners have unlimited liability
11.	Capital Contribution	Determined by partners as per the LLP agreement.	Limited to the unpaid amount of share capital agreed to be contributed	Unlimited may extend to their personal assets