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Amendments to the Limited Liability Partnerships Bill [H.L.]

Limited Liability Partnerships Bill [H.L.] -
Amendments to be debated in the House of Lords

Here you can browse the Amendments to the Limited Liability Partnerships Bill [H.L.] to be moved in Committee in the House of Lords.

  
Clause 4
 
  
BY THE LORD GOODHART
THE LORD PHILLIPS OF SUDBURY
THE LORD SHARMAN
 
     Page 2, line 38, at end insert--
 
    ("(  )  Subject to any agreement with the other members to the contrary, a member of a limited liability partnership may cease to be a member on giving not less than 28 days notice to the limited liability partnership.")
 
  
Clause 5
 
  
BY THE LORD GOODHART
THE LORD PHILLIPS OF SUDBURY
THE LORD SHARMAN
 
     Page 2, line 44, at end insert--
 
    ("(  )  Subject to this Act and to the provisions of the incorporation document and of any such agreement as is mentioned in subsection (1), the mutual rights and duties of the members of a limited liability partnership shall be governed by the rules and principles which would apply if the law relating to partnerships applied to them and the property of the limited liability partnership were partnership property.")
 
  
After Clause 10
 
  
BY THE LORD GOODHART
THE LORD PHILLIPS OF SUDBURY
THE LORD SHARMAN
 
     Insert the following new Clause-- 
     ("  .  In section 362 of the Income and Corporation Taxes Act 1988, after subsection (2) insert--
        (3)  For the purposes of subsection (2), an individual who is a member of a limited liability partnership shall be deemed to be a member of the limited liability partnership otherwise than as a limited partner."")
Interest payment relief on loan to buy into partnership.
  
After Clause 12
 
  
BY THE LORD GOODHART
THE LORD PHILLIPS OF SUDBURY
THE LORD SHARMAN
 
     Insert the following new Clause-- 
     ("  .  In the Insolvency Act 1986, after section 214 insert--Insolvency: Contribution by member to partnership assets where property withdrawn.
 Contribution by member to assets of limited liability partnership where property withdrawn.     214A.--(1)  This section has effect in relation to a person who is or has been a member of a limited liability partnership where, in the course of the winding up of that limited liability partnership, it appears that subsection (2) of this section applies in relation to that person.
 
    (2)  This subsection applies in relation to a person if--
 
  
    (a)  within the period of two years ending with the commencement of the winding up, he was a member of the limited liability partnership who withdrew for his own benefit property of the limited liability partnership, whether in the form of a share of profits, salary, repayment of prepayment of interest on a loan to the limited liability partnership or any withdrawal of property, and
 
  
    (b)  it is proved by the liquidator to the satisfaction of the court that at the same time of the withdrawal he knew or had reasonable grounds for believing that the limited liability partnership--
 
 
          (i)  was at the time of the withdrawal unable to pay its debts within the meaning of section 123 of the Act, or

          (ii)  became so unable to pay its debts after the assets of the limited liability partnership had been depleted by that withdrawal taken together with all other withdrawals (if any) made by any members contemporaneously with that withdrawal or in contemplation when that withdrawal was made.

 
     (3)  Where this section has effect in relation to any person the court, on the application of the liquidation, may declare that that person is to be liable to make such contribution (if any) to the limited liability partnership's assets as the court thinks proper.
 
    (4)  The court shall not make a declaration in relation to any person the amount of which exceeds the aggregate of the amounts or values of all the withdrawals referred to in paragraph (a) of subsection (2) made by that person within the period of 2 years referred to in that paragraph.
 
    (5)  The court shall not make a declaration under this section with respect to any person if it is satisfied that, after each withdrawal referred to in subsection (2), he had reasonable grounds for believing that there remained a reasonable prospect that the limited liability partnership would avoid going into liquidation.
 
    (6)  For the purposes of this section a limited liability partnership goes into insolvent liquidation if it goes into liquidation at a time when its assets are insufficient for the payment of its debts and other liabilities and the expenses of winding up.
 
    (7)  In this section "member" includes a person in accordance with whose directions or instructions (otherwise than by way of advice given by him in a professional capacity) the members of the limited liability partnership are accustomed to act.
 
    (8)  This section is without prejudice to section 213."")
 
  
Clause 14
 
  
BY THE LORD GOODHART
THE LORD PHILLIPS OF SUDBURY
THE LORD SHARMAN
 
     Page 6, line 34, at end insert--
    ("(  )  requiring limited liability partnerships and oversea limited liability partnerships or any category of limited liability partnership or oversea limited liability partnership to effect and maintain policies of insurance on such terms and for such amount as may be specified against such risks as may be specified (including risks of negligence by a member, agent or employee of the limited liability partnership or oversea limited liability partnership),")
 
 
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