Cabinet approves amendment in Limited Accountability Partnership Act to make business easier

The government approved amendments to the Limited Accountability Partnership (LLP) Act. Its objective is to de-criminalize various provisions under the law and make it easier to do business in the country. Finance Minister Nirmala Sitharaman gave information to this effect after the cabinet meeting. The changes proposed under the amendment include keeping him out of criminal action for non-compliance with the provisions of the law. Sitharaman, who is also holding the portfolio of Corporate Affairs Ministry, said with this approval, the total number of penal provisions in the Act will, inter alia, come down to 22, while the number of compoundable offenses for disposal of cases through conciliation will be reduced to just seven. . Also, the number of serious offenses will be three and the number of defaults to be dealt with under the In-House Adjudication Arrangement (IM) i.e. as per the orders of the Adjudicating Officer appointed by the Central Government will be reduced to only 12. Under the in-house adjudication system, the officer hearing the case has the right to settle the case by charging a fine. The LLP Act has 81 sections and four schedules.