Ministry of Corporate Affairs’ latestCircular which provides important
clarifications on the provisions
of theLimited Liability Partnership (LLP) Act, 2008 with regard to
conversion of apartnership firm
into LLP.
It has been clarified that the LLP Act, 2008 does not
provide for conversion of two or more firms into a single LLP.
Clarifying further, the MCA has said thatthe provisions of section 58(4)
(b) of theLLP Act, 2008 provide
that on conversion of a firm into an LLP, as perthe provisions of the said
Act, all property, assets, interests, rights, privileges, liabilities,
obligations relating to the firm and the whole
of the undertaking of the firm
shall be transferred to and shall vest in the LLP without further assurance, act or
deed. Accordingly, if a CA audit firm, being an auditor in a company under theCompanies Act, 1956, gets converted
into an LLP after complying with the relevant provisions of theLLP Act, 2008, then, such an LLP,
in accordance with the provisions of section 58(4) (b) of the LLP
Act, 2008 would be deemed to be the auditor of the said
company. The relevant appointee company may take
note of such change in status of the auditor through a resolution of the Board.
I call uponthe CA firms and members concerned to take note of the above
clarifications and comply accordingly.
Source-
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