MCA introduces new compliances for LLP partners

The Ministry of Corporate Affairs vide notification dated 11th February, 2022 has made the provisions of sections 90, 164, 165, 167, sub-section (5) of section 206, sub-section (3) of section 207, 252 and section 439 of the Companies Act, 2013 applicable to limited liability partnership. The notification provides that No person, who is or has been a designated partner of limited liability partnership, as the case may be, which—

1. has not filed financial statements or the Statement of Account and Solvency or annual returns, as the case may be, for any continuous period of three financial years; or
2. has failed to repay the deposits accepted by it or pay interest thereon or to redeem any debentures on the due date or pay interest due thereon or pay any dividend declared and such failure to pay or redeem continues for one
   year or more,

shall be eligible to become or continue as a designated partner of that limited liability partnership or to become designated partner in other limited liability partnerships for a period of five years from the date on which the said company or limited liability partnership fails to do so.

Any person holding office as designated partner in limited liability partnerships more than the limits as specified in the act ,immediately before this notification shall, within a period of one year from such notification ,-

1. Choose not more than specified limit of those limited liability partnerships , as limited liability partnerships in which he wishes to continue to hold the office of designated partner;
2. Resign his office as designated partner in the other remaining limited liability partnerships; and
3. Intimate the choice made by him under clause (a), to each one of the limited liability partnerships in which he was holding the office of designated partner before such notification and Registrar having such jurisdiction in respect of each limited liability partnership.