Question

Which of the following is/are NOT true about Limited Liability Partnership? A. It is a body corporate, B. It is a legal entity separate from that of its partners, C. It has perpetual succession, D. Any change in the partners of a limited liability partnership shall affect the existence, rights or liabilities of this partnership. Choose the correct answer from the options given below:

• A. A, B only
• B. B, C only
• C. C, D only
• D. D only

Hint:

LLP is a body corporate, separate legal entity, and has perpetual succession. Change in partners does not affect its existence.

Answer 1

The Correct Option is D

Concept: A Limited Liability Partnership is a hybrid business structure. It has features of both partnership and company.

Step 1: Check Statement A.
An LLP is a body corporate. This statement is correct. \[ A = \text{True} \]

Step 2: Check Statement B.
An LLP is a separate legal entity from its partners. This is also correct. \[ B = \text{True} \]

Step 3: Check Statement C.
An LLP has perpetual succession. This means that change in partners does not end the LLP. \[ C = \text{True} \]

Step 4: Check Statement D.
Statement D says that change in partners shall affect the existence, rights or liabilities of LLP. This is incorrect because LLP continues despite changes in partners. \[ D = \text{Not true} \] Therefore, the only statement which is not true is D.