Panel suggests provision for NCD issuance by LLPs
New Delhi, Jan 19 (IANS,WISHAVWARTA) The Company Law Committee on Decriminalisation of the Limited Liability Partnership Act, 2008, has recommended the inclusion of a provision in the Act for issuance of non-convertible debentures (NCD) by LLPs.
Among other recommendations, the committee has suggested decriminalisation of 12 offences under the LLP Act and the introduction of a new concept of “Small LLP”.
As per the committee’s report, it has suggested that the 12 offences should be shifted to the ‘In-house Adjudication Mechanism’. One offence has been recommended for omission.
Under Section 7 of the LLP Act, every limited liability partnership shall have at least two designated partners and at least one of them has to be a resident of India. For the purposes of this section, the term “resident in India” means a person who has stayed in India for a period of not less than 120 days during the immediately preceding one year, as per the current norm.
