LLPs MAY NOT GET TOTAL IMMUNITY AGAINST LAPSES

Professionals and investors planning to do riskier business without fear of losing their personal assets under the proposed Limited Liability Partnership (LLP) vehicle may not get total immunity for their
lapses. The government has introduced a provision in the new LLP Bill under which creditors and clients are liable to get compensation from a partner, an employee or the LLP itself for their omissions and fraudulent dealings. This is in addition to the unlimited criminal liability these persons will bear for their oversight or intention to dupe their customers or lenders.