Treatment of transfer of Reserves by LLP

A Private Limited Company wishes to convert itself into LLP. Questions arising are:

  1. What will happen to the Share Capital and Reserves and Surplus of Pvt Ltd?
  2. it is said that for three years these reserves and share capital can not be touched. it it ture?
  3. if it is true, can the shareholders transfer the share capital and reserves to their capital account and withdraw?
  4. if yes, what will be the impact of Income Tax on such transfers / withdrawal?
Replies (1)
1. share capital and reserves will remain as it is.
read relevant section of companies act.

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