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QUESTION 2
“Limited Liability Partnership is an alternative vehicle to carry out business which combines the characteristics of a private company and a conventional partnership.”
From the above statement, discuss the concept of conventional partnership and Limited Liability Partnership. Distinguish LLP with conventional partnership and company.
Partnership is a business owned by two or more persons but not more than 20 persons. Identity card name cannot be used as business name. It is registered with the Companies Commission of Malaysia - Suruhanjaya Syarikat Malaysia (SSM)) - under the Registration of Businesses Act 1956.The partnership business must be registered under the relevant law depending on its location. The Act defines a partnership as ‘the relation which subsists between persons carrying on business in common with a view of profit’. (Krishnan,Rajoo & Vergis, 2009)
Limited Liability Partnership (LLP)
A new business concept, Limited Liability Partnership (LLP) has now been introduced in Malaysia. LLP is an alternative business vehicle regulated under the Limited Liability Partnerships Act 2012 which combines the characteristics of a company and a conventional partnership. LLP is a new business vehicle. It has conventional partnership features and also the privileges of a limited liability company. LLP is a separate legal entity that gives the benefits of limited liability and still allows its members the flexibility of organizing their internal structure (like a traditional partnership). The Limited Liability Partnership Act 2012 was passed in February 2012 and is expected to take effect later in 2013.
The LLP business structure is designed for all lawful business purposes with a view to make profit. LLP may also be formed by professionals such as Lawyers, Chartered Accountants and Company Secretaries for the purpose of carrying on their professional practice. The LLP concept will also support start ups, small and medium enterprises (SMEs)
“Limited Liability Partnership is an alternative vehicle to carry out business which combines the characteristics of a private company and a conventional partnership.”
From the above statement, discuss the concept of conventional partnership and Limited Liability Partnership. Distinguish LLP with conventional partnership and company.
Partnership is a business owned by two or more persons but not more than 20 persons. Identity card name cannot be used as business name. It is registered with the Companies Commission of Malaysia - Suruhanjaya Syarikat Malaysia (SSM)) - under the Registration of Businesses Act 1956.The partnership business must be registered under the relevant law depending on its location. The Act defines a partnership as ‘the relation which subsists between persons carrying on business in common with a view of profit’. (Krishnan,Rajoo & Vergis, 2009)
Limited Liability Partnership (LLP)
A new business concept, Limited Liability Partnership (LLP) has now been introduced in Malaysia. LLP is an alternative business vehicle regulated under the Limited Liability Partnerships Act 2012 which combines the characteristics of a company and a conventional partnership. LLP is a new business vehicle. It has conventional partnership features and also the privileges of a limited liability company. LLP is a separate legal entity that gives the benefits of limited liability and still allows its members the flexibility of organizing their internal structure (like a traditional partnership). The Limited Liability Partnership Act 2012 was passed in February 2012 and is expected to take effect later in 2013.
The LLP business structure is designed for all lawful business purposes with a view to make profit. LLP may also be formed by professionals such as Lawyers, Chartered Accountants and Company Secretaries for the purpose of carrying on their professional practice. The LLP concept will also support start ups, small and medium enterprises (SMEs)