limited liability partnership course code: law 379 part: b. org topic: 4

LIMITED LIABILITY PARTNERSHIP

COURSE CODE : LAW 379

PART : B. ORG

TOPIC : 4

OBJECTIVESAt the end of this lesson the students should be able to: Ascertain the definition of limited liability partnership List the features/characteristics of LLP

DEFINITION Limited Liability Partnership (LLP) is an

alternative business vehicle regulated under the Limited Liability Partnerships Act 2012 which combines the characteristics of a company and a conventional partnership.

Who is it for? The LLP business structure is designed for

all lawful business purposes with a view to make profit.

May be formed by professionals such as Lawyers, Chartered Accountants and Company Secretaries for the purpose of carrying on their professional practice.

The LLP concept will also support start ups, small and medium enterprises (SMEs) to grow their businesses without having to worry too much on their personal liabilities, personal assets and strict compliance requirements.

FEATURES The protection of limited liability to its

partners similar to the limited liability enjoyed by shareholders of a company coupled with flexibility of internal business regulation through partnership arrangement similar to a conventional partnership. 

Any debts and obligations of the LLP will be borne by the assets of the LLP and not that of its partners.

Has the legal status of a body corporate which is capable of suing & being sued in its own name, holding assets & doing such other acts and things in its name as bodies corporate may lawfully do and suffer.

Offers flexibility in terms of its formation, maintenance and termination while simultaneously has the necessary dynamics and appeal to be able to compete domestically and internationally.

With the introduction of LLP, entrepreneurs will have more options to choose the most preferred form of business vehicle.

CONCLUSION With the introduction of LLP, entrepreneurs

will have more options to choose the most preferred form of business vehicle.

Relevant statute: LLP Act 2012 LLP Regulations 2012 General Guidelines For Registration of Limited

Liability Partnership And Related Matters 

REFERENCE Companies Commission of Malaysia FAQ – Limited Liability Partnership (SSM)