Application of certain provision of the Companies Act 2013 to Limited Liability Partnerships

In a move aimed at improving the compliance of limited liability partnerships (LLPs) and to better regulate designated partners, the ministry of corporate affairs (MCA) has decided to extend certain sections of the Companies Act to the LLP Act.

A total of eight sections relating to the register of significant beneficial owners, disqualifications of directors, conduct of inquiries and inspections and non-cognisable offences will soon be applicable to LLPs, the MCA said in an intimation on Thursday.

“The changes are to fill the gaps in the LLP Act by applying the sections of the Companies Act to LLPs, as has been done in the past,” a senior government official said.

Clauses of Section 164 of the Companies Act, which state {that a} director of an organization which has defaulted on submitting monetary statements or annual returns for 3 consecutive years will likely be disqualified as director, shall apply to LLPs. Similarly, those that selected to kind LLPs to keep away from disclosure of helpful possession will now have to disclose this info as clauses of Section 90 of the Companies Act may also apply to LLPs.

Section 67 of the LLP Act permits the federal government to apply sections of the Companies Act to the LLP Act by approach of notification. However, for the reason that transfer is within the nature of amendments to the LLP Act, Parliament’s approval will likely be required as the notification have to be positioned in each Houses, the official stated.

Summary of the above in tabulated form

Section Sub-section Description
90 (1) to (11) Investigation of beneficial ownership of shares in certain cases
164 (1) and (2) Disqualifications for appointment of director
165 (1) and (3) to (6) Number of directorships
167 (1) to (3) Vacation of office of director
206 (5) Power to call for information, inspect books and conduct inquiries
207 (3) Conduct of inspection and inquiry
252 (1) to (3) Appeal to Tribunal
439 (1) to (4) Offences to be non-cognizable

Detailed analysis is attached in the mail for ready reference.

We will share  the notification, once above will be made effective by MCA

Notification is attached herewith for your ready reference & reading.