LIMITED LIABILITY PARTNERSHIP LIQUIDATION

An LLP may decide to opt for creditors’ voluntary winding up if its partners are of the opinion that it cannot by reason of its liabilities continue its business. The LLP convene a meeting of its creditors to consider its proposal for the company to be wound up. If the creditors agree, the LLP will appoint a liquidator or provisional liquidator to wind up its affairs and file the necessary notifications required under the Limited Liability Partnership Act.

An LLP may be wound up under an Order of the Court under certain circumstances e.g. the LLP is unable to pay its debts. The Court may appoint a liquidator to wind up the affairs of the LLP. Where no liquidator is appointed by the Court, the Official Receiver shall be the liquidator of the LLP. The liquidator will file the necessary notifications required under the Limited Liability Partnership Act.

An LLP may apply to ACRA to strike its name off the Register pursuant to Section 38 of the Limited Liability Partnership Act. ACRA may approve the application if it has reasonable cause to believe that the LLP is not carrying on business.