PARTNERSHIP

Question 1

What is Limited Liability Partnership?

Answer 1

In a LLP, there must be at least two designated members, one of which must be domiciled in Nigeria.
it fused both partnership & companies.

Question 2

Features of LLP?

Answer 2

1. perpetual succession-S 746(2)
2. There must be a minimum of two designated partners(one of which shall be a resident in Nigeria)-S 749
3. Limited Liability-
4. They are a separate entity from its members-S 746(1)
5. They must be registered with CAC

Question 3

What is Limited Partnership?

Answer 3

A limited partnership is one that shall consists of one or more of its members as general partners and one or more limited partners.
S 795

Question 4

Difference between LLP and LP?

Answer 4

1. LLP is a body corporate that can sue & be sued. LP is not a body corporate and the partnership firm is sued in the name of the partners and more particularly the general partners are liable for the debt and obligations of the partnership.
2. all partners of a LLP may take part in its management and have powers to bind the Partnership in the course of the business of the LLP or with its authority; whereas, in a limited partnership, limited partners shall not take part in the management of the partnership business.
3. IN LLP, liability of members is limited. In LP, there must be a general partner that bears liability for the members
4. No maximum no of members, just two minimum designated partner for LLP. In LP, the maximum no of partners is 20.
5. LLP must have at least two partners known as “designated partners”. An LP must have a partner known as a “general partner” who has unlimited liability for all debts and obligations of the partnership.