LIMITED LIABILITY PARTNERSHIP AGREEMENT
(As per Section 23(4) of LLP Act, 2008)
THIS Agreement of Limited Liability Partnership made at __________ this ___th Day of _______, 2010. BETWEEN
1. ___________________, son of _______________, residing at __________________________________________________, which expression shall, unless it be repugnant to the subject or context thereof, include his legal heirs, successors, nominees and permitted assignees and hereinafter called the FIRST PARTY, and
2. ___________________, son of _______________, residing at __________________________________________________, which expression shall, unless it be repugnant to the subject or context thereof, include his legal heirs, successors, nominees and permitted assignees and hereinafter called the SECOND PARTY,
(THE FIRST AND SECOND PARTY SHALL BE INDIVIDUALLY REFERRED TO AS A PARTNER AND COLLECTIVELY AS PARTNERS)
WHEREAS the abovementioned PARTIES have mutually agreed to carry on business of ____________________________________________ and other ancillary business more particularly described in the Schedule I annexed herewith or any other business in any other manner as may be decided by the majority of Partners.
NOW The First and Second Party are interested in forming a Limited Liability Partnership under the Limited Liability Partnership Act, 2008 and that they intend to record the terms and conditions of the said formation.
Definitions:
(i) The Act and the said Act shall mean the Limited Liability Partnership Act, 2008
(ii) The Rules and the said Rules shall mean the Limited Liability Partnership Rules, 2009
(iii) The provisions of the first schedule of the Act will not be applicable to the LLP so far as they are not inconsistent with any of the clauses of the agreement.
(iv) Designated Partners - Designated Partner is Partner as defined u/s 7 of Limited Liability Partnership Act, 2008
(v) Partners - Partners are those who are admitted to __________________ LLP with the mutual consent of the Designated Partners and include the Designated Partner.
(vi) Contribution – Contribution means the amount brought in by the partners of ______ LLP.
(vii) Profit Sharing Ratio – Profit Sharing Ratio means the ratio in which the profits of the LLP shall be distributed among the partners of the LLP, and is more specifically described in Clause 12 of this Agreement.
IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:
1. A Limited Liability Partnership shall be carried on in the name and style of ‘________________ LLP.’ [hereinafter referred to as ‘_____ LLP’ or ‘the LLP’]. ______ LLP shall have its Registered Office at ________________________ and / or at such other place or places, as shall be agreed to by the majority of the Partners from time to time. In the event of the business being carried out from the premises mentioned hereto, it is agreed and understood by the Second Party that the said premises belongs to the First Party and the Second Party shall not have any right, title or claim in the said premises or create any mortgage or lien thereon and shall at no point in time be entitled to claim any tenancy or occupational rights in the said premises either on their own or through this LLP.
The First and Second Parties shall be the Partners on the incorporation of _____ LLP.
The First and Second Parties shall be the Designated Partners on the incorporation of ______ LLP.
2. The initial contribution of ______ LLP shall be Rs _________/- (Rupees ________ only) which shall be contributed by the Partners in the following proportions: First Party: ___% i.e. Rs. ____/- (Rupees _________ only) Second Party : ___% i.e. Rs. ____/- (Rupees _________ only) Any further contributions, if required by the LLP shall be brought by the Partners in such ratio as may be decided with the consent of all the Partners from time to time. OR with the consent of majority of the Partners from time to time OR in the ratio of initial contribution. OR in the ratio of profit sharing ratio mentioned hereinafter. OR in the ratio of voting rights mentioned hereinafter.
3. The LLP shall have a common seal to be affixed on documents as defined by Partners under the signature of any of the Designated Partners.
4. All the Partners are entitled to share profit and losses in the ratio of their respective contribution in the LLP. OR in the ratio of their respective voting rights in the LLP. OR in the ratio of ______________. OR in such ratio as may be determined by majority of the partners. OR in such ratio as may be determined by all the partners.
5. The voting rights of all the Partners shall be in the ratio of the ratio of ___________. OR in the ratio of their respective contribution in the LLP. OR in the ratio of their respective profit sharing ratio in the LLP. OR in such ratio as may be determined by majority of the partners. OR in such ratio as may be determined by all the partners.
6. It is agreed that __________ (___%) or such higher percentage (%) of the total receipts in the bank account of ____ LLP shall be retained for payment of income tax and _____ per cent (___%) shall be retained for expenses of _____ LLP and the balance shall be distributed to the parties hereto in the ratios mentioned above. At the end of each year, if the expenditure incurred as per the final accounts is less than _____ percent (___ %), the balance shall be distributed amongst the parties in the above mentioned ratios. The parties however, can distribute a larger percentage (%) of the receipts after retaining the amount payable for income tax and other statutory liabilities at any point in time by mutual consent.
7. The business of _____ LLP shall be of _____________________ and other ancillary business more particularly described in the Schedule I annexed herewith or any other business in any other manner as may be decided by the majority of Partners. OR as may be decided by the all the Partners. OR in the manner as may be agreed by ____ out of ____ partners. OR in the manner as may be agreed by the partners carrying voting rights of _____ %.
Contribution:
8. The Contribution of a Partner may be tangible, intangible, moveable or immoveable property.
9. Subject to approval of all the partners, ____ LLP may call for bringing in additional amount of contribution from the existing partners in their profit sharing ratio, for meeting operational needs, working capital requirements and any other requirements.
10. Such increase in contribution shall be done by amending the LLP Agreement to this effect with the approval of all partners and necessary compliance with all the requirements under the Act and Rules.
11. The contribution brought in by each of the partners may be withdrawn, partly or fully, with the consent of all the partners. Such withdrawal of contribution shall be followed by a suitable modification of the LLP Agreement with the consent of all the partners. OR as may be decided by majority of the Partners. OR in the manner as may be agreed by ____ out of ____ partners. OR in the manner as may be agreed by the partners carrying voting rights of _____ %.
Profit Sharing Ratio:
12. The profit sharing ratio of the partners of _____ LLP will be in proportion to his contribution of _____ LLP.
OR
in the ratio of their respective voting rights in the LLP.
OR
in the ratio of ______________.
OR
in such ratio as may be determined by majority of the partners.
OR
in such ratio as may be determined by all the partners.
13. Unless all the Partners agree otherwise, the profit sharing ratio of any new Partner admitted in the LLP will be in proportion to his contribution of the LLP.
14. The profit sharing ratio of the Partners may be altered subject to approval of all Partners,
OR
subject to approval of majority of the Partners
OR
subject to approval of such number of Partners carrying voting rights of _____ %.
OR
subject to approval of such number of Partners who have contributed _____ % of contribution. And alteration of the LLP Agreement to this effect and necessary compliance with all the requirements under the Act and Rules.
PARTNERS
Admission of New Partner:
15. No Person or Body Corporate may be introduced as a new Partner without the consent of all the existing Partners.
OR
subject to approval of majority of the Partners
OR subject to approval of ______ partners
OR
subject to approval of such number of Partners carrying voting rights of _____ %.
OR
subject to approval of such number of Partners who have contributed _____ % of contribution. And such incoming Partner shall give his prior consent to act as Partner of _____ LLP.
16. Consequent to admission of a new partner, the LLP Agreement shall be suitably modified with the consent of all the partners.
OR
subject to approval of majority of the Partners OR subject to approval of ______ partners
OR
subject to approval of such number of Partners carrying voting rights of _____ %.
OR
subject to approval of such number of Partners who have contributed _____ % of contribution.
Resignation/ Retirement of Partner:
17. Any Partner may cease to be Partner of the LLP by giving a notice in writing of not less than thirty (30) days to the other Partners of his intention to resign/ retire as Partner.
18. On the expiry of the notice period or at an earlier date at the discretion of continuing Partners, the resigning/ retiring Partner shall cease to be a Partner in the LLP.
19. The accounts of the LLP shall be taken as closed on the date of resignation/ retirement/ transfer of partners’ rights to other persons/ person other than existing partners, and the amount found due from or payable to the Resigning/ Retiring Partner/ Partner whose rights are being transferred, shall be paid or recovered within three months of the date of resignation/ retirement. The business of the LLP with all its assets and liabilities shall be continued by the continuing Partners.
Death of Partner:
20. On the death of the First Party, the Second Party agrees to admit within thirty (30) days ______________ (Spouse) as a Partner on the same terms and conditions as the First Party. In the event of _______________ not being alive or not agreeing to be admitted as a partner, the Second party agrees to admit within thirty (30) days _______________ and ______________ (Children) in equal share as Partners on the same terms and conditions as the First Party.
21. On the death of the Second Party, the First Party agrees to admit within thirty (30) days ______________ (Spouse) as a Partner on the same terms and conditions as the Second Party. In the event of _______________ not being alive or not agreeing to be admitted as a partner, the First party agrees to admit within thirty (30) days _______________ and ______________ (Children) in equal share as Partners on the same terms and conditions as the Second Party.
22. Upon the death of any of the Partners herein the heirs, executors and administrators of such deceased Partners shall be entitled to and shall be paid the full payment in respect of the right, title and interest of such deceased Partner.
23. On the death of any Partner, if his or her heir / heirs opt not to become the Partner, the surviving Partners shall have the option to get the profits of the LLP in the profit sharing ratio of the deceased Partner.
Removal of Partner
24. No Partner can be expelled by the other Partners or a majority of Partners except in where he / she have been found guilty of carrying on any activity / business of ______ LLP for fraudulent purposes.
25. A Partner may be expelled by giving a notice of thirty (30) days from the date of decision taken by the majority of Partners, after giving an opportunity to such partner, to be heard.
Rights of Partner:
26. All the Partners hereto shall have the rights, title and interest in all the assets and properties in the LLP in the proportion of their contribution to the capital.
27. Each of the parties hereto shall be entitled to carry on their own, separate and independent business as hitherto they might be doing or they may hereafter do as they deem fit and proper and other Partners and the LLP shall have no objection thereto provided that the said Partner has intimated the said fact to the LLP before the start of the independent business and moreover he shall not use the name of the LLP to carry on the said business.
28. Every Partner has a right to have access to and to inspect and copy any books of account / documents, etc. of the LLP.
OR
On requirement of ______ number of partners, the books of accounts/ documents, etc., can be inspected.
OR
On requirement of such number of partners carrying ____% of voting rights, the books of accounts/ documents, etc., can be inspected.
29. The LLP shall have perpetual succession, and the death, retirement or insolvency of any Partner shall not dissolve the LLP.
30. Upon insolvency of a Partner his or her rights, title and interest in the LLP shall come to an end.
Duties of Partners:
31. Every Partner shall account to the Limited Liability Partnership for any benefit derived by him without the consent of the Limited Liability Partnership from any transaction concerning the Limited Liability Partnership, or from any use by him of the property, name or any business connection of the Limited Liability Partnership.
32. Every Partner shall indemnify the Limited Liability Partnership and the other existing Partners for any loss caused to it by his fraud in the conduct of the business of the Limited Liability Partnership.
33. Each Partner shall render true accounts and full information of all things affecting the Limited Liability Partnership to any Partner or his legal representatives.
34. No Partner shall without the written consent of all the other Partners of _____ LLP:
I. Employ any money, goods or effects of ______ LLP or pledge the credit thereof except in the ordinary course of business and upon the account or for the benefit of _____ LLP.
II. Lend money or give credit on behalf of _____ LLP or to have any dealings with any Persons, Company or Firm whom the other Partners previously in writing have forbidden it to trust or deal with. Any loss incurred through any breach of provisions shall be made good with _____ LLP by the Partner incurring the same.
III. Enter into any bond or become sureties or security with or for any person or do knowingly cause or suffer to be done anything whereby _____ LLP property or any part thereof may be seized.
IV. Assign, mortgage or charge his or her share in ______ LLP or any asset or property thereof or make any other person a Partner therein.
V. Compromise or compound or (except upon payment in full) release or discharge any debt due to ______ LLP except upon the written consent given by all the other Partners.
Extent of Liability of the LLP:
33. The LLP is not bound by anything done by a Partner in dealing with a person if:
I. the Partner in fact has no authority to act for the LLP in doing a particular act; and
II. the person dealing with him knows that he has no authority or does not know or believe him to be a Partner of the LLP.
MEETINGS
34. One or more meetings of the partners of the LLP may be held at any such time and at any such intervals as may be deemed fit by all the partners of the LLP.
OR
as may be deemed fit by the majority of the partners of the LLP.
OR
as may be deemed fit by ______ number of partners of the LLP.
OR
as may be deemed fit by the such partners of the LLP carrying voting rights of _____ %.
OR
as may be deemed fit by the Designated partners of the LLP. Notice of Meeting:
35. All the matters related to _______ LLP as mentioned in Schedule II to this Agreement shall be decided by a resolution passed by all the Partners. OR by the majority of the partners of the LLP. OR by ______ number of partners of the LLP. OR by the such partners of the LLP carrying voting rights of _____ %.
36. The meeting of the Partners may be called by giving 15 days prior notice to all the Partners at their residential address or by mail or by Email provided by the individual Partners in writing to the LLP. In case any Partner is a foreign resident the meeting may be conducted by serving 15 days prior notice through email. Provided that the meeting may be called at shorter notice, if majority of the Partners agree in writing to the same either before or after the meeting.
Requisition for Meetings:
37. Any partner holding not less than one-tenth of the paid up value of contribution of _____ LLP, singly or jointly with one or more partners of the LLP, may make a requisition for convening and holding a meeting of the Partners of _____ LLP. Such requisition made by the Members must state the object or objects of the meeting proposed to be called, and must be signed by the requisitionists and be deposited at the office; provided that such requisition may consist of several documents in like form each signed by one or more requisitionists.
38. Upon the receipt of any such requisition, the Designated Partners shall forthwith call a meeting of the Partners of _____ LLP and if the Designated Partners do not proceed within 15 (fifteen) days from the date of the requisition being deposited at the Office to cause a meeting to be called; on a day not later than 30 (thirty) days from the date of deposit of the requisition, the requisitionists, or such of their number as represent either a majority in value of the contribution held by all of them or not less than one-tenth of such of the paid-up value of contribution of the LLP, whichever is less, may themselves call the meeting, but in either case any meeting so called shall be held within three months from the date of deposit of the requisition as aforesaid.
Place and Manner of holding Meetings:
39. With the written Consent of all the Partners, a meeting of the Partners may be conducted through Teleconferencing.
40. The meeting of Partners shall ordinarily be held at the registered office of ______ LLP or at any other place as per the convenience and agreement of Partners.
41. At any time, any of a partner of ______ LLP, being a body corporate, it shall be deemed to be present, if it is represented by any individual holding a valid letter of authority/ power of attorney/ resolution allowing such individual to represent the body corporate in the meetings of Partners of _____ LLP.
Proxy
42. A partner of ______ LLP may, by executing a power of attorney or a letter of authority, appoint any individual as his proxy to represent such Partner in his absence, at the meetings of Partners of _____ LLP. If such appointer is a corporation, such power of attorney/ letter of authority shall be under the common seal of such corporation.
43. Such proxy appointed by a Partner may or may not be another partner of ____ LLP, and such proxy should be deposited at the registered office of _____ LLP at least _____ hours before the time fixed for the meeting of Partners of ____ LLP.
Quorum for Meetings:
44. Two Partners present in person shall be a quorum for a Meeting of partners of _____ LLP.
45. If, at the expiration of half an hour from the time appointed for holding a meeting of _______ LLP, a quorum shall not be present, the meeting if convened by or upon the requisition of Partners, shall stand dissolved, but in any other case the meeting shall stand adjourned to the same day in the next week at the same time and place or to such other day at such other time and place as the majority of Designated Partners may determine, and if at such adjourned meeting a quorum is not present at the expiration of half an hour from the time appointed for holding the meeting, the Partners present shall be a quorum, and may transact, the business for which the meeting was called.
Chairman of the meeting
46. The majority of the partners may, at any time, elect any person amongst them as a Chairman to chair all or any of the meetings of the Partners of _____ LLP held after his appointment as a Chairman.
47. If the majority of the partners of _____ LLP have not appointed any Chairman or if at any meeting, such Chairman shall not be present within fifteen minutes of the time appointed for holding such meeting then the Partners present shall elect one of their Partners to be the Chairman.
48. No business shall be discussed at any Meeting of Partners except the election of a Chairman, whilst the chair is vacant.
Voting at meetings of Partners
49. The voting for matters discussed at the meetings of Partners shall be by show of hands, unless voting by poll is demanded by the Partners.
50. At the meetings of Partners, votes may be given either personally or by proxy. A body corporate, being a Partner of ____ LLP may vote either by a proxy or by a representative duly authorised by a Board resolution/ power of attorney/ letter of authority, and such representative shall be entitled to exercise the same rights and powers (including the right to vote by proxy) on behalf of the body corporate which he represents as the body could exercise if it were an individual Partner.
51. Every Partner shall be entitled to be present and to speak and vote at such meeting, and on a show of hands every Partner present in person shall have one vote and upon a poll the voting rights of every Partner, whether present in person or by proxy, shall be in proportion to his share of the paid-up contribution of the LLP.
52. A Partner present by proxy shall be entitled to vote only on a poll but not on a show of hands, unless such Partner is a body corporate present by a representative in which case such proxy shall have a vote on the show of hands as if he were a Partner.
53. The Chairman of any meeting shall be the sole judge of the validity of every vote tendered at such meeting. The Chairman present at the taking of a poll shall be the sole judge of the validity of every vote tendered at such poll.
Chairman’s Casting Vote
54. In the case of any equality of votes, the Chairman shall both on a show of hands and at a poll (if any) have a casting vote in addition to the votes to which he may be entitled as a Partner.
Circular resolution
55. The Partners may pass the necessary resolutions in writing by way of circulating the resolution in draft together with the necessary documents, relating to the business mentioned in Schedule II and such resolutions shall be binding on all the Partners of _______ LLP.
56. On a poll taken at a meeting of Partners of _____ LLP, a Partner entitled to more than one vote, or his proxy, or other person entitled to vote for him as the case may be, need not, if he votes, use all his votes or cast in the same way all the votes he uses.
57. The Partners shall ensure that all decisions taken by them in meetings are recorded in the minutes within thirty (30) days of taking such decisions and are kept and maintained at the Registered Office of _______ LLP.
58. Each Partner shall: I
(i) Punctually pay and discharge the separate debts and engagement and indemnify the other Partners and _______ LLP assets against the same and all proceedings, costs, claims and demands in respect thereof.
(ii) Be faithful to the other Partners and shall at all times, give and render to the other Partners true and correct account and information of the ______ LLP business and affairs and of all transactions, matters and things relating thereto;
(iii)Punctually and forthwith account for and pay in ______ LLP all moneys, cheques and other negotiable instruments whatsoever received by him for and on behalf of ______ LLP and shall punctually and forthwith credit or get credited the same in the books of accounts of _______ LLP.
II Each of the Partners shall give time and attention as may be required for the fulfilment of the objectives of _______ LLP business and they all shall be the Working Partners.
DESIGNATED PARTNERS
Appointment of Designated Partners:
59. The First Party and the Second Party shall act as the Designated Partners of _____ LLP in terms of the requirement of the Limited Liability Partnership Act, 2008 and the Limited Liability Partnership Rules, 2009.
60. The majority of partners of _____ LLP may appoint, from time to time, any one or more members to be the Designated Partners of _____ LLP, such that the minimum number of Designated Partners does not, at any time, falls below two.
61. The Designated Partners need not be compulsorily partners of ______ LLP.
62. ______ LLP may from time to lime, increase or reduce the number of Designated Partners, with the approval of all Partners, within the limits fixed in this behalf by this Agreement and the LLP Act, 2008.
Resignation of Designated Partner:
63. Any Designated Partner may resign from ______ LLP by giving a notice of 30 days to the LLP.
64. The vacant position caused due to resignation of such Designated Partner shall be filled in with the approval of majority of the partners of _____ LLP within a period of 2 months from the date of resignation.
Removal of Designated Partner:
65. Any Designated Partner can be expelled by the other Partners or a majority of Partners by assigning the reason for removal of Designated Partner.
66. A Designated Partner may be expelled by giving a notice of thirty (30) days with the approval of majority of Partners, after giving an opportunity to such Designated Partner, to be heard.
67. The vacant position caused due to removal of such Designated Partner shall be filled in with the approval of all partners of _____ LLP within a period of 3 months from the date of removal.
Powers of Designated Partner:
68. The business of _____ LLP shall be managed jointly by the Designated Partners, who may exercise all such powers of the LLP and do all such acts and things as are not, by the Act, or this Agreement, required to be exercised only by the Partners of _____ LLP.
69. Provided that the Designated Partners shall not except with the consent of the majority of the Partners:-
a. sell, lease or otherwise dispose of the whole or substantially the whole of the undertaking of the LLP, or where the LLP owns more than one undertaking, of the whole, or substantially the whole, of any such undertaking;
b. remit or give lime for the repayment of, any debt by a Designated Partner;
c. invest, otherwise than in trust securities, the amount of compensation received by the LLP in respect of the compulsory acquisition of any such undertaking as is referred to in Clause (a) or of any premises or properties used for any such undertaking and without which it cannot be carried on or can be carried on only with difficulty or only after a considerable time;
d. contribute to Charitable and other funds not directly relating to the business of the LLP or the welfare of its employees any amounts, the aggregate of which will in any financial year exceed Rupees __________ only or five percent of its average net profits of the LLP. 70. Subject to the restrictions on the Designated Partners, provided by the above clause, the Designated Partners shall have the following powers:
1) To pay the costs, charges and expenses preliminary and incidental to the promotion, formation, establishment and registration of the LLP.
2) To purchase or otherwise acquire for the LLP any property, rights, privileges which the LLP is authorised to acquire, at or for such price or consideration and generally on such terms and conditions as they think fit, and in any such purchases or other acquisition to accept such title as the Designated Partners may believe or may be advised to be reasonably satisfactory.
3) To pay for any property, rights, or privileges acquired or services rendered in the LLP either wholly or partially, in cash or bonds, mortgages, or other securities.
4) To secure the fulfillment of any contracts or engagements entered into by the LLP by mortgage of all or any of the property of the Company and its unpaid contribution for the time being or in such manner as they may think fit.
5) To appoint any person to accept and to hold in trust for the LLP any property belonging to the LLP, or in which it is interested, or for any other purposes; and to execute and do all such deeds and things as may be required in relation to any such trust, and to provide for the remuneration of such trustee or trustees.
6) To institute, conduct, defend, compound, or abandon any legal proceedings by or against the LLP or its officers or otherwise payment or satisfaction of any debts due, and of any claims or demands by or against the LLP, and to refer any differences to arbitration, and observe and perform any awards made thereon.
7) To act on behalf of the LLP in all matters relating to bankrupts and insolvents.
8) To make and give receipts, releases and other discharges for moneys payable to the LLP, and for the claims and demands of the LLP.
9) To invest, deposit and deal with any moneys of the LLP not immediately required for the purpose thereof, upon such security, or without security and in such Page 14 of 20 manner as they may think f t, and from time to time to vary or realise such investments.
10) To execute in the name and on behalf of the LLP in favour of any Designated Partner or other person who may incur or be about to incur any personal liability whether as principal or surety: for the benefit of the LLP such mortgages of the LLP’s property (present and future) as they think fit; and any such mortgage may contain a power of sale, and such other powers, provisions, covenants and agreements as shall be agreed upon.
11)To determine from time to time who shall be entitled to sign, on the LLP’s behalf, bills, notes, receipts, acceptances, endorsements, cheques, dividend warrants, releases, contracts and documents and to give necessary authority for such purpose.
12) To distribute by way of bonus amongst the staff of the LLP a share in the profits of the LLP, and to give to any officer or other person employed by the LLP a commission on the profits of any particular business or transaction and to charge such bonus or commission as part of the working expenses of the LLP.
13)To provide for the welfare of Designated Partners or Ex-Designated Partners or employees or ex-employees of the LLP and their wives, widows and families or the dependants or connections of such persons by building or contributing to the building of houses, dwellings or chaw or by grants of moneys, pensions, gratuities, allowances, bonus or other payments; or by creating and from time to time subscribing or contributing to provident and other associations, institutions or funds or trusts and by providing or subscribing or contributing towards places of instruction and recreation, hospitals and dispensaries, medical and other attendance and other assistance as the majority of Designated Partners shall think fit.
14)To subscribe or contribute or otherwise to assist or to guarantee money to any charitable, benevolent religious, scientific, national or other institutions or objects which shall have any moral or other claim to support or aid by the LLP either by reason of locality of operation, or of public and general utility or otherwise.
15) To appoint, and at their discretion remove or suspend such general managers, secretaries, assistants, supervisors, clerks, agents and servants for permanent, temporary or special services as they may from time to time think it, and to determine their powers and duties and fix their salaries, or emoluments or remuneration, and to require security in such instances and to such amount as they may think fit. And also from time to time to provide for the management and transaction of the affairs of the LLP in any specified locality in India or elsewhere in such manner as they think fit.
16) To comply with requirements of any local law which in their opinion it shall in the interest of the LLP be necessary or expedient to comply with.
17) From time to time and at any time to establish any Local Board for managing any of the affairs of the LLP in any specified locality in India or elsewhere and to appoint any persons to be Members of such Local Boards and to fix their remuneration.
18)From time to time and at any time to delegate to any persons so appointed any of the powers authorities and discretions for the time being vested in the Designated Partners, other than their power to make loans or borrow moneys and to authorise the Members for the time being of any such Local Board, or any of them, to fill up any vacancies therein and to act notwithstanding vacancies, and any such appointment or delegation may be made on such terms, and subject to such conditions as the majority of Designated Partners may think fit, and the majority of Designated Partners may at any time remove any persons so appointed and may annul any such delegation.
19)At any time and from lime to time by Power of Attorney under the Seal of the LLP, to appoint any person or persons to be the Attorney or Attorneys of the LLP, for such purposes and with such powers, authorities, and discretions (not exceeding those vested in or exercisable by the Designated Partners under these presents and excluding the power to make Loans and borrow moneys) and for such period and subject to such conditions as the Board may from time to time think fit, and any such appointment may (if the Majority of Designated Partners thinks fit) be made in favour of the Members of any local board, established as aforesaid or in favour of any LLP or the partners, directors, nominees or managers of any Company or firm or otherwise in favour of any fluctuating body of persons whether nominated directly, or indirectly by the majority of Designated Partners and any such Power of Attorney may contain such powers for the protection or convenience of persons dealing with such Attorneys as the majority of Designated Partners may think fit, and may contain Powers enabling any such delegates or Attorneys as aforesaid to sub-delegate all or any of the Powers, authorities and discretions for the time-being vested in them.
20)For or in relation to any of the matters aforesaid or otherwise for the purposes of the LLP to enter into all such negotiations and contracts and rescind and vary all such contracts, and execute and do all such acts, deeds, and things in the name and on behalf of the LLP as they may consider expedient.
21) From time to time make, vary or repeal bye-laws for the regulation of the business of the LLP, its officers and servants.
22) The Designated Partners may formulate, create, institute or set up such schemes, trusts, plans or proposals as they may deem lit for the purpose of providing incentive to the officers, employees and workers of the LLP.
23)All cheques, promissory notes, drafts, bills of exchange, and other negotiable instruments, and all receipts for moneys paid by the LLP, shall be signed, drawn, accepted or otherwise executed as (the case may be, in such manner as the Designated Partners shall from time to time by resolution determine.
71. All the Designated Partners may, from time to time entrust and confer upon a single Designated Partner for the time being, such of the powers exercisable upon such terms and conditions and with such restrictions as they may think fit either collaterally with or to the exclusion of and in substitution for all or any of their own powers and from time to time revoke, withdraw, alter or vary all or any of such powers.
72. The Designated Partners shall be responsible for the doing of all acts, matters and things as are required to be done by ______ LLP in respect of compliance of the provisions of this Act including filing of any document, return, statement and the like report pursuant to the provisions of Limited Liability Partnership Act, 2008.
73. The Designated Partners shall be responsible for the doing of all acts arising out of this agreement.
Remuneration of Designated Partners
74. ______ LLP shall pay such remuneration to each of the Designated Partner as may be decided by the majority of the Partners, for rendering his services as such.
75. ____ LLP shall indemnify and defend its Partners and other officers from and against any and all liability in connection with claims, actions and proceedings (regardless of the outcome), judgment, loss or settlement thereof, whether civil or criminal, arising out of or resulting from their respective performances as Partners and officers of _____ LLP, except for the gross negligence or willful misconduct of the Partner or officer seeking indemnification.
Seal
76. The Partners shall provide a Common Seal for the purposes of the LLP and shall have power from time to time to destroy the same and substitute a new seal in lieu thereof and the Partners shall provide for the safe custody of the Seal for the time being and the Seal shall never be used except by the authority of all the Partners previously given.
Transfer or Assignment of rights:
77. In case any of the Partners of ______ LLP desires to transfer or assign his interest in _____ LLP, he has to offer the same to the remaining Partners by giving 15 days’ notice.
78. In the absence of any communication by the remaining Partners the concerned Partner can transfer or assign his share in the profits of the LLP to any other person in the market by execution of an agreement/ deed in writing.
79. Such transfer or assignment of share in the profits of the LLP shall be communicated to all the Partners within 30 days from the date of execution of the agreement/ deed, or the effective date of transfer/ assignment, whichever is earlier.
Borrowing Powers:
80. ____ LLP may, from time to time at its discretion, borrow funds from its Partners or public, banks or any financial institutions or any other individual/ body corporate, for meeting its working capital requirements, and any other administrative and strategic requirements, with the approval of all the Designated Partners, to the extent of _____ % (______ per cent) of the contribution available in the account of _____ LLP as on the date of borrowing.
81. ____ LLP may borrow funds from its Partners or public, banks or any financial institutions or any other individual/ body corporate, exceeding _____ % (______ per cent) of the contribution available in the account of _____ LLP as on the date of borrowing with the approval of the majority partners of the LLP.
82. In respect of the funds borrowed, _____ LLP may provide as a security, all or any part of the property of the Company (both present and future) including its unpaid contribution for the time being, and other securities may be made assignable free from any equities between the LLP and the person to whom the same may be issued.
83. _____ LLP shall maintain a register of all mortgages, hypothecation of the property of the LLP made by the LLP against the borrowings of the LLP.
84. Any borrowings made by the LLP may, at any time, be converted into contribution of ______ LLP and the lender of such funds may be converted into a Partner of _____ LLP, subject to approval of all partners of the LLP.
85. On behalf of the LLP, whenever Designated Partners enter into a contract with any Government, Central, State or Local, any bank or financial institution or any person or persons (hereinafter referred to as “the appointer”) for borrowing any money or for providing any guarantee or security or for technical collaboration or assistance or or entering into any other arrangement whatsoever, shall have the right to appoint or nominate by a notice in writing, from the appointer, addressed to the LLP one or more Representative Officers for the LLP, for such period and upon such conditions as may be mentioned in the agreement.
Auditors:
86. The auditors can be appointed with the consent of all the Designated Partners of the LLP. OR with the consent of majority of the Designated Partners of the LLP.
87. If the auditors are not appointed by the Designated Partners of the LLP, then the Auditors can be appointed with the consent of all the Partners of the LLP. OR with the consent of majority of the Partners of the LLP. OR with the consent of ______ number of Partners of the LLP. OR with the consent of ______ such Partners of the LLP carrying voting rights of _____ %.
88. The auditors can be removed before the expiry of the term of auditors with the consent of all the Partners of the LLP. OR with the consent of majority of the Partners of the LLP. OR with the consent of ______ number of Partners of the LLP. OR with the consent of ______ such Partners of the LLP carrying voting rights of _____ %.
Miscellaneous Provisions:
89. _____ LLP shall indemnify each Partner in respect of payments made and personal liabilities incurred by him : I. in the ordinary and proper conduct of the business of the Limited Liability Partnership; or II. in or about anything necessarily done for the preservation of the business or property of the Limited Liability Partnership.
90. The books of accounts of ____ LLP shall be kept for the reference of all the Partners at the Registered Office of ____ LLP or such other place as agreed by all the Partners.
91. The accounting year of _____ LLP shall be from 1st April of the year to 31st March of subsequent year. The first accounting year shall be from the date of commencement of _____ LLP till 31st March of the subsequent year.
92. The final accounts of _____ LLP containing the Profit & Loss Account and Balance Sheet shall be made within six (6) months after the 31st March of the relevant accounting year and each Partner, if he agrees in writing by signing the Statement of Accounts so prepared, shall be bound by it and will not be entitled to re-open the accounts except with the consent of all the other Partners.
93. It is expressly agreed that the bank account of _____ LLP shall be opened with any Scheduled Bank / s as the Partners may mutually decide and shall be operated jointly by First Party and Second Party, or as otherwise agreed by all the Partners.
94. Notwithstanding anything said or provided herein, the Partners shall have full discretion to modify, alter, or vary the terms and conditions of this LLP Agreement, subject to the provisions of the Limited Liability Partnership Act, 2008, in any manner whatsoever as they may deem fit by mutual agreement which shall be reduced to writing and be signed by all the Partners and thereupon and the said writing shall become part of this LLP Agreement.
95. All disputes between the Partners or between the Partner and the _____ LLP arising out of the Limited Liability Partnership agreement which cannot be resolved in terms of this agreement shall be referred for arbitration as per the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996). Winding up:
96. ______ LLP can be wound up with the consent of all the Partners subject to the provisions of Limited Liability Partnership Act, 2008.
IN WITNESS WHEREOF the parties have put their respective hands the day and year first hereinabove written
Signed and delivered by
the Partners of: ‘___________ LLP.’
_________________ (Partner)
\ _________________ (Partner)
Witness :
a) Name :
b) Address :
c) Signature :
b) Name :
Address:
Signature :
SCHEDULE I
ANCILLARY OR OTHER BUSINESS CARRIED ON BY ______ LLP
(A) THE BUSINESS INCIDENTAL OR ANCILLARY TO THE ATTAINMENT OF THE MAIN BUSINESS ARE :
THE OTHER BUSINESSES ARE :
MATTERS TO BE DECIDED BY A RESOLUTION PASSED BY ALL THE PARTNERS OF ______ LLP
The following acts on behalf of the LLP or any business controlled by the LLP or for its benefit, must be submitted to the meeting of Designated Partners and shall require the affirmative vote of all the Designated Partners either at a duly constituted meeting of the Designated Partners or by circular resolution, viz.,
(a) Increase or reduction in contribution.
(b) Increase / Decrease or removal of Designated Partners or change in working Designated Partners.
(c) Alteration of LLP Agreement.
(d) Modification in the right of Designated Partners,
(e) Placing of the LLP in Voluntary dissolution or liquidation
(f) Amalgamation or merger of the LLP with other business or LLP. (g) Declaration of dividend and its quantum, and other appropriations of profits.
(h) Termination / modification of Lease or License Agreement for the premises / equipments taken on lease by the LLP before the expiration of the term of lease or License.
(i) Any sale or lease of the whole or substantial part of the business or undertaking of the LLP.
(j) Sale or Assignment of goodwill of the LLP.
(k) Opening / closing of bank account / s and modifying mandate for operation of such account / s.
(l) The approval of the annual financial, economic and investment plan as well as profit planning.
(m) All questions relating to the policy of business, employment of staff and labour, credits, loans, etc.
