LLP - Partner Expulsion

[vrsrass...@gmail.com]

Dear Professional Colleagues,

One of My client has started a LLP with 4 DP.

From the date of incorporation of the LLP, two of the DPs have not taken part in the Business of the LLP. they are not attending the meetings of the partners,

because of their absence many projects and Accounts of the LLP has not processed. Because as per the LLP agreement LLP needs 51 percent for simple majority, but the working DPs have only 50%.

Is there any way in doing expulsion of the Absent DPs.?

Kindly suggest me an answer!!

because of this many work in the LLP got stuck.

Thanks in advance !!!

Ranjith

[VISHAKHA AGRAWAL]

In above case, you need to refer the LLP Agreement of the LLP. The provisions regarding expulsion of a Designated Partner are mentioned therein. Generally, a Designated Partner can be removed by the consent of majority of Partners after giving the reason for such removal.

Also the LLP is required to give atleast 30 days before the notice to the person after giving an opportunity to such designated partner, to be heard.

Hope this satisfies your query.

Thanks and Regards,

CS Vishakha Agrawal

Vishakha Agrawal & Associates

Practising Company Secretaries

186, Scheme No. 91,

Malwa Mill Indore (M.P.)

Mob. No. 8518888114, 9424501155

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[VRSR ASSOCIATES]

Thanks for the reply.

In the agreement, in order to move an ordinary resolution they require 51%. however the 2 working DPs have only 50%.

To expel a DP we need SR with 75% as per the agreement.

Is there any way to Bypass this clause?

Thanks & Regards

Ranjithsingh

Partner

V R S R & ASSOCIATES

Chartered Accountants

+91 7299975988

skype id: ranjithsingh8