The question (15 marks)
Distinguish a limited liability partnership from a partnership firm and from a company. A firm of six chartered accountants asks you whether it should convert into a limited liability partnership; advise it, explaining the effect of conversion. (15 marks)
MU Module II, conversion into an LLP and the comparison with a firm and a company; chapter on conversion, winding up and the three forms compared.
Plan your answer on paper before you look at the authorities — issue first, then the rule, then apply it to these facts.
It tests Unit 2 · The Limited Liability Partnership Act, 2008 of Contract – II.
Authorities you will need
- Salomon v. Salomon & Co., Ltd. (1897) A.C. 22 (H.L.)
- Lee v. Lee's Air Farming, Ltd. (1960) 3 All E.R. 420
- Sections 18, 25 and 31 of the Indian Partnership Act 1932
How an answer is marked
A full-marks answer names the issue in one line, states the rule with its section, cites the authority, applies it to these facts and concludes — in that order. The app's model answer for this question is written in exactly that shape, with a checklist to mark your own attempt against.