In the LLP Act there is no specific provision in regarding the alteration of objects/activity of LLP. In the rules, if any changes in the LLP agreement, a copy of changed LLP agreement and particulars of change shall me filed with Registrar. The only provision regarding LLP activity is section 11(2) (c) which is in fact matters covered in the LLP incorporation document.
Most of LLP agreement having contain a clause regarding the LLP activity and procedures to be followed for changing the activity. Based on the partners understanding, LLP agreement set out procedures to be followed for altering LLP agreement.
After completing the procedures set out in LLP, LLP shall file a copy of revised LLP agreement with respective Registrar of Companies.
Procedure for Change the LLP Activity/ Object
- Check LLP Agreement: Check whether the proposed business is allowable to be carried out by LLP.
- Prior Approval: Take approvals, if any applicable under other laws.
- Partner Consent: Change the activity as provided in the LLP Agreement or if the agreement is silent, with the consent of all the Partners.
- Partner Resolution : Pass the Board resolution.
- Supplementary Agreement: Sign and execute supplementary LLP agreement for change in business activity.
- File the Form: File Form LLP 3 with ROC within 30 days of execution of LLP Agreement.
- Existing LLP Agreement
- Partner Meeting with Minutes
- Partner resolution
- Supplementary Agreement