LLP Destination
Amalgamation/Merger of LLPs Back
Just like a company, it is also possible to merger two or more LLPs. LLP destination offers services from concept to completion with respect to Merger/Amalgamation of two or more LLPs and Merger between LLP and a Private Company. Procedure of Compromise or Arrangement of LLPs
  • Who can apply for Compromise or Arrangement

    Any creditor or partner or in the case of a LLP which is being wound up, the liquidator can apply for a compromise or arrangement

    Employees cannot apply for Compromise or Arrangement

  • Who is the approving authority

    National Company Law Tribunal constituted under sub-section (1) of section 10FB of the Companies Act, 1956.

    According to Section 10FB of the Companies Act the Central Government shall by notification in the Official Gazette constitute a Tribunal to be known as the NCLT, to exercise and discharge powers and functions as are, or may be, conferred on it by or under this Act or any other law for the time being in force.

  • Meeting

    On application, the Tribunal may order a meeting of the creditors or of the partners.

  • Approval of majority

    At the meeting, the Scheme must be approved by a majority representing three-fourths in value of creditors, or partners.

    Similar to the Companies Act, the scheme must be approved by a majority in number of partners or creditors as well as by three-fourths in value of them.

    The majority in number should be taken for the partners present and not the total number of partners of the LLP. For example, if a LLP has 100 partners with a total contribution of 100 shares and only 20 of them are present, 51% of the same holding 75 shares have to approve the scheme.

  • Order to be filed with the Registrar

    Definition of Registrar under LLP: Registrar means a Registrar, or an Additional, a Joint, a Deputy or an Assistant Registrar, having the duty of registering companies under the Companies Act, 1956.

    The order of the Tribunal is to filed with the Registrar within 30 days of the date of the order

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