The Company Law Committee on Decriminalisation of the Limited Liability Partnership Act, 2008, has recommended the inclusion of a provision in the Act for issuance of non-convertible debentures (NCD) by LLPs.
Among other recommendations, the committee has suggested decriminalisation of 12 offences under the LLP Act and the introduction of a new concept of “Small LLP”.
As per the committee’s report, it has suggested that the 12 offences should be shifted to the ‘In-house Adjudication Mechanism’. One offence has been recommended for omission.
Under Section 7 of the LLP Act, every limited liability partnership shall have at least two designated partners and at least one of them has to be a resident of India. For the purposes of this section, the term “resident in India” means a person who has stayed in India for a period of not less than 120 days during the immediately preceding one year, as per the current norm.