COST ACCOUNTING
COST ACCOUNTING STANDARDS
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Question
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Restricts partners’ liabilities to their own acts and the acts of individuals under their control. A partnership in which each partner is not personally liable for malpractice or negligence claims unless the partner was responsible for providing the service that resulted in the claim.
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Includes both general partner(s) with unlimited liability and a limited partner(s) with liability restricted to the amount invested.
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Detailed explanation-1: -Under LLP structure, liability of the partner is limited to his agreed contribution. Further, no partner is liable on account of the independent or un-authorized acts of other partners, thus allowing individual partners to be shielded from joint liability created by another partner’s wrongful acts or misconduct.
Detailed explanation-2: -(1) If the limited liability partnership contravenes the provisions of sub-section (1) of section 7, the limited liability partnership and its every partner shall be punishable with fine which shall not be less than ten thousand rupees but which may extend to five lakh rupees.
Detailed explanation-3: -In a limited partnership (LP), at least one partner has unlimited liability-the general partner(s). The other partners (limited partners) have limited liability, meaning their personal assets typically cannot be used to satisfy business debts and liabilities.
Detailed explanation-4: -Section 2 in The Limited Liability Partnership Act, 2008.