Template Description

This partner’s resolution template authorizes the cessation of a designated partner or Partner from the LLP, under the Limited Liability Partnership Act, 2008. It is 2-page MS Word document. This resolution is a mandatory for LLPs looking to cease a Designated Partner or Partner as per the Limited Liability Partnership Act, 2008. The intended audience includes legal professionals, and other relevant stakeholders.

Understanding the Resolution for Cessation of a Partner or Designated Partner of LLP

What is Resolution for Cessation of a Partner?

A Resolution for Cessation of a Partner is an official document used by a Limited Liability Partnership (LLP) to formalize the removal or resignation of a partner. This resolution is essential for legally documenting the partner's departure and updating the LLP's records to reflect this change.

Circumstances Where Cessation of a Partner is conducted:

• Resignation: A partner voluntarily resigns from the LLP. This may be due to personal reasons, new opportunities, or a desire to exit the business.

• Retirement: A partner decides to retire from active participation in the LLP. This typically requires updating the LLP Agreement and filing necessary documents with the Registrar of Companies.

• Death or Incapacity: The death or legal incapacity of a partner results in their cessation from the LLP. The partnership may need to follow specific legal procedures for this situation.

• Breach of Agreement or Misconduct: A partner may be removed due to serious breaches of the LLP Agreement or misconduct, following the terms specified in the partnership agreement and legal guidelines.

• Insolvency: If a partner becomes insolvent, they may be removed from the LLP, with their financial liabilities handled according to legal provisions.

Procedure for the cessation of a partner:

The procedure for the cessation of a partner in a Limited Liability Partnership (LLP) involves several steps:

• Resignation Notice: The partner wishing to exit must provide written notice of resignation to the remaining partners. This notice should be given at least 30 days in advance unless the LLP agreement specifies a different period.

• Meeting and Agreement: A meeting of the partners should be convened to acknowledge the resignation and discuss the implications. Any adjustments or distributions related to the exiting partner’s share need to be agreed upon.

• Filing with MCA: The LLP must file Form 4 with the Ministry of Corporate Affairs (MCA) to officially record the cessation of the partner. This form must be submitted within 30 days from the resignation.

• Updating Records: The LLP's records and any statutory documents should be updated to reflect the change in partnership.

Conclusion

This resolution is necessary for formally documenting the removal of a partner from the LLP, ensuring compliance with legal requirements, and updating the LLP’s official records. It allows the LLP to maintain accurate records of its partners and manage its operations effectively.