The partner to share their profitable or losses of a LLP and that must be transferable. The assignment transfer may uses for participate to performing in the LLP.
Power of Registrar to call for information
The registrar has been empowered to get such information as he may require from the LLP as explained below:
He may require any person including present or former partner or designated partner or employee to answer any question or supply any details within a reasonable period.
If any person does not supply the information or when the registrar is not satisfied with the reply, the registrar may summon the person to appear before him or before an inspector designated by him.
The registrar may report his views on the matter to the central government as the provisions to section 43 empower the central government to take action on the report of the register.
Section 43 to 54 deal with investigation and related matters. The central government may assign one or more supervisors to consider the affairs of a LLP at the instance of the Tribunal or the court. The tribunal application may not less than one-fifth of the total number of partners of a LLP. The central government is also empowered to create inspectors to look into the affairs of a LLP.
On receipt of the report of the inspector, the central government may take steps as are prescribed in section 50 to 55.
Conversion to LLP – Section 55 to 57
A firm may convert into a LLP in confirm with the procedure prescribed in the second schedule. The application shall be made to the registrar in part A of form 17 with the statement of partners in part B of form 17.
A private limited company may convert into a LLP in accordance with the procedure prescribed in the 3rd Schedule. The application shall be made to the registrar in part A of Form 18 with the statement of shareholders in Part B of Form 18.
Registrar’s powers to accord approval to conversion
On being satisfied that the provisions of the respective schedule have been complied with the registrar. It shall issue a certificate of registration in form 19 stating that the LLP is registered under the act from the date specified in the certificate. Upon such conversion the LLP shall, within 15 days of registration, inform the concerned registrar of Firm or the concerned registrar of companies in form 14 about the conversion of the former entities registered with them respectively and of the particulars of the LLP.
Effects of Conversion
Upon such conversion, from the date of registration, the effects of conversion shall be mentioned in the 2nd, 3rd and 4th schedule.
Upon such conversion, the partnership firm, the shareholders of the private limited company or unlisted public company, the LLP to which such firm or such company has been converted. The partners of the new LLP shall be bound by the provisions of the 2nd, 3rd and 4th schedule, as the case may be.
On and from the LLP registration date:
In the respective case there shall be a LLP by the name specified in the certificate of registration.
The firm or the company shall be deemed to be dissolved and removed from the records of the ROC or ROF.