How to Change Designated Partner in LLP
In a Limited Liability Partnership (LLP), the designated partner plays a crucial role in the management and operations of the firm. However, there may be situations where changing the designated partner becomes necessary. This article provides a comprehensive guide on how to change the designated partner in an LLP, ensuring compliance with the relevant legal requirements and procedures.
Understanding the Role of a Designated Partner
Before delving into the process of changing a designated partner, it is essential to understand the role and responsibilities of a designated partner. A designated partner is an individual who is responsible for ensuring that the LLP complies with the applicable laws and regulations. They are also responsible for maintaining proper records and accounts, as well as representing the LLP in legal matters.
Identifying the Reasons for Changing the Designated Partner
There can be various reasons for changing the designated partner in an LLP. Some common reasons include:
1. The designated partner is no longer willing or able to fulfill their responsibilities.
2. The designated partner has resigned or been removed from the partnership.
3. The designated partner has become incapacitated or deceased.
4. The LLP needs to restructure its management team.
Notifying the LLP Members
Before proceeding with the change, it is crucial to notify all the LLP members about the intention to change the designated partner. This can be done through a formal resolution passed at a general meeting or by written consent from all the members.
Obtaining Approval from the LLP Members
Once the members have been notified, the next step is to obtain their approval for the change. This can be done through a special resolution, which requires a majority of the members to vote in favor of the change.
Updating the LLP’s Register of Partners
After obtaining the members’ approval, the LLP must update its register of partners to reflect the change. This involves removing the details of the outgoing designated partner and adding the details of the new designated partner. The updated register must be signed by the new designated partner and filed with the relevant authorities within 14 days of the change.
Notifying the Registrar of Companies
The LLP must also notify the Registrar of Companies about the change in the designated partner. This can be done by filing a form, such as Form 15, within 30 days of the change. The form must include the details of the outgoing and new designated partner, as well as the date of the change.
Updating Other Relevant Documents
Lastly, the LLP should update all other relevant documents, such as the partnership agreement, to reflect the change in the designated partner. This ensures that all parties involved are aware of the new designated partner and their responsibilities.
Conclusion
Changing the designated partner in an LLP is a process that requires careful attention to legal requirements and procedures. By following the steps outlined in this article, the LLP can ensure a smooth transition and maintain compliance with the relevant laws and regulations.
