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Chapter: 1.Introduction5

1.1 Research Methodology8

1.1.1 Object of Study8

1.1.2.Scope of the Study8

1.1.3 Source of Information9

1.2.Research Scheme9

1.3.Research Hypothesis12

CHAPTER 2:HISTORICAL EVOLUTION OF LIMITED LIABILITY RULE13

2.1.Introduction:13

2.2.The History of the Law of Limited Liability:14

2.2.1 Ancient Rome:14

2.2.2 Medieval Italian and Continental Versions of Limited Liability:15

2.2.3 English Limited Liability: Seventeenth and Eighteenth Centuries:16

2.2.4 Nineteenth Century English Reforms:18

2.2.5 American Limited Liability:21

2.2.6 Other Nations:23

2.2.7 Managers and Creditors:23

2.2.8 : Means of Achieving Limited Liability:24

2.2.9 Express Contracts24

2.2.10 Becoming Judgment Proof24

2.2.11 Incorporation and the Use of Other Limited Liability Entities:25

2.2.12 Subsidiaries and Enterprise Liability:26

2.2.13Exceptions to Limited Liability: Lifting or Piercing the Veil:28

2.2.14 Statutory Limits on Liability:30

2.2.15 Bankruptcy:31

2.2.16 Limited Liability and the Supply of Capital:31

2.2.17 Encouraging Risky Investments:32

2.2.18 Limited Liability in Contract:34

2.3 EVOLUTION OF NEW BUSINESS VECHICLE: LLP38

2.3.1 LIMITED LIABILITY PARTNERSHIP: AN OVERVIEW:39

2.3.2 LLP & BUSINESS:40

2.4 CONCLUSION41

Chapter:3.Position in other countries42

3.1 LLP in UNITED STATES:43

3.1.1 Emergence of limited liability partnership in the United States:43

3.1.2 Procedures for setting up limited liability partnership:45

3.1.3 Eligibility:46

3.1.4 Scope of liability limitation:48

3.1.5 Safeguards:51

3.1.6 Disclosure of limited liability status:52

3.1.7 Non-fiancial reporting:53

3.1.8 Preservation of assets in the course of winding-up:53

3.1.9 Complaints and disciplinary systems:54

3.1.10 Risk management strategies:54

3.1.11 Impact:55

3.2 POSITION IN UNITED KINGDOM:55

3.2.1 Emergence of limited liability partnership in the United Kingdom:55

3.2.1 Definition and nature of limited liability partnership in England and Wales:57

3.2.2 Procedures for setting up limited liability partnership:58

3.2.3 Eligibility:59

3.2.4 Statutory requirements for setting up limited liability partnership:60

3.2.5 Scope of liability limitation:61

3.2.6 Indirect liability by contribution63

3.2.7 Liability for one’s own wrongdoings:63

3.2.8 Liability in the winding up of limited liability partnership:64

3.2.9 Safeguards:64

3.2.10 Disclosure of limited liability status :65

3.2.11 Non-financial reporting:66

3.2.12 Financial reporting:67

3.2.13 Preservation of assets in the course of winding up:68

3.2.14 Complaints and disciplinary systems:69

3.2.15 Risks management strategies:69

3.3.POSITION IN SINGAPORE:70

3.3.1 REASONS FOR INTRODUCING LLPs:70

3.3.2 NATURE OF AN LLP:71

3.3.3 FORMATION OF AN LLP:73

3.3.4 MANAGEMENT OF AN LLP:74

3.3.5 DISSOLUTION OF AN LLP:75

3.3.6 TAX TREATMENT OF AN LLP:76

3.4 CONCLUSION:77

Chapter:4.LLP in India78

4.1 Introduction:78

4.1.1 Vast opportunities:78

4.1.2 Overall Business Environment79

4.1.3 New Initiatives :79

4.2.Legal framework of LLP in India:82

4.2.1 RATIONALE OF LIMITED LIABILITY PARTNERSHIP:83

4.3 Various Committee Reports:84

4.3.1 Recommendations and Critique of Naresh Chandra Committee Report:85

4.3.2 Recommendations of J.J Irani committee:92

4.5 Enactment of the new act of limited liability partnership 2008:95

4.5.1 Constitutional background:98

4.5.2 Salient Features:99

4.5.3 Existing business organisations in India and their limitations106

Disadvantages of partnership Firm:113

4.6 DISTINGUISHING AN LLP FROM OTHER BUSINESS FORMS:120

4.6.1 A Comparison between traditional partnership and LLP121

4.6.2 COMPARISON BETWEEN A COMPANY AND LLP124

4.7 CONCLUSION:129

Chapter:5.Indian LLP is a mix of U.K and Singapore model130

5.1.INTRODUCTION:130

5.2 LLP in USA, UK, Singapore, Japan and India: A Comparative Study:131

5.3 CONCLUSION:147

Chapter:6.Procedural and legal aspect of L.L.P in India150

6.1.INTRODUCTION:150

6.2 LEGAL ASPECTS LLP:150

6.2.1LIABILITY PROVISIONS:155

6.2.3 FOREIGN LLPS:157

6.3 Procedure for formation of an LLP:158

6.4 Tax Provisions on LLP:164

6.4.1 LLP can claim the following deductions:167

6.5 CONCLUSION:169

Chapter: 7.Conclusion170

BIBLIOGRAPHY183