The Limited Liability Partnership Act 2016 has been passed, assented and gazetted on the 2nd December 2016.
A Limited Liability Partnership (“LLP”) structure is the preferred structure for services firms like law firms. It is a type of partnership where every partner in the LLP enjoys limited liability protection against the LLP’s obligations and debts. In addition, partners have limited liability protection against malpractice suits that stem from another partner’s negligent acts. A partner is also given the ability to take part in the decision making of the LLP by taking part in the management of the LLP.
The mode of operation of the LLP shall be spelt out in detail under a Limited Liability Partnership Agreement (“Partnership Agreement”) that would be entered into between the partners.
Main Highlights of the LLPA
(i) offering professional or consultancy services;
(ii) Holding a Global Legal Advisory Services Licence (as defined under the Financial Services Act 2007); or
(iii) Engaging in such activities as may be prescribed.
3) Separate Legal Personality
(i) A LLP shall have perpetual succession;
(ii) Any change in the partners shall not affect the existence, rights or liabilities of the LLP.
4) Constitution of a LLP
5) Limited Liability
For more information contact Hyder Aboobakar on +230 4051521 or firstname.lastname@example.org
12 December 2016
This circular is not intended to be a substitute for legal advice or a legal opinion and should not be relied on or treated as a substitute for the same. It deals in broad terms only and is intended to merely provide a brief overview and give general information. Neither Cim Global Business nor its officers accepts any responsibility and so far as is legally permissible, disclaim all liability for any loss which may arise from reliance on or acting upon the said information. For legal advice you should contact an independent law practitioner on any specific legal problem or matter that you might wish to seek legal advice