The ministry of corporate affairs (MCA) has decided to extend certain sections of the Companies Act to the Limited Liability Partnership (LLP) Act.
It said in an intimation that in order to improve the compliance of LLPs and to better regulate designated partners, total of eight sections relating to the register of significant beneficial owners, disqualifications of directors, conduct of inquiries and inspections and non-cognisable offences will soon be applicable to LLPs.
As per Clauses of Section 164 of the Companies Act, a director of an organization which has defaulted on submitting monetary statements or annual returns for 3 consecutive years will likely be disqualified as director, shall apply to LLPs.
Similarly, disclosure of helpful possession will now have to disclose this info as clauses of Section 90 of the Companies Act may also apply to LLPs.
However, for the reason that transfer is within the nature of amendments to the LLP Act, Parliament’s approval will likely be required as the notification have to be positioned in each Houses, the official stated.