| Preface |
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v | |
| Table of Cases |
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xix | |
| Table of Statutes |
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xlvii | |
| Table of Statutory Instruments |
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lxvii | |
| Table of United Kingdom Materials |
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lxxix | |
| Table of International Materials |
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lxxxi | |
| Chapter 1 Overview and Introductory Matters |
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1 | (14) |
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1 | (1) |
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Disclosure and regulation |
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2 | (1) |
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3 | (3) |
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6 | (1) |
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Scheme of the legislation |
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7 | (3) |
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Transitional provisions and continuity of the law |
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10 | (1) |
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10 | (2) |
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12 | (1) |
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12 | (1) |
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13 | (1) |
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13 | (2) |
| Chapter 2 Incorporation |
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15 | (20) |
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15 | (15) |
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a Two or more persons subscribe |
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15 | (7) |
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b The incorporation document |
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22 | (7) |
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c Statement of compliance |
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29 | (1) |
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Certificate and registration |
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30 | (2) |
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32 | (1) |
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33 | (2) |
| Chapter 3 The Corporate Entity |
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35 | (10) |
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Separate legal personality |
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35 | (2) |
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Piercing the corporate veil |
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37 | (2) |
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39 | (1) |
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39 | (1) |
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Effect of failure to notify the registrar |
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40 | (1) |
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40 | (3) |
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LLP ceasing to satisfy section 2(1)(a) |
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43 | (2) |
| Chapter 4 Formalities and Requirements after Incorporation |
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45 | (12) |
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Requirements as to display and disclosure |
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45 | (3) |
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Display of name at registered office and other locations |
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45 | (1) |
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Disclosure of information |
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46 | (1) |
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Effect of breach of requirements |
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47 | (1) |
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Formalities for contracts, deeds and other documents |
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48 | (3) |
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48 | (2) |
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Pre-incorporation contracts |
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50 | (1) |
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51 | (3) |
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54 | (1) |
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55 | (2) |
| Chapter 5 The LLP and the Outside World |
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57 | (14) |
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57 | (1) |
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Members and other agents acting within their authority |
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58 | (1) |
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Members and other agents acting outside their authority |
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58 | (8) |
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Employees (and other non-member agents) |
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59 | (2) |
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61 | (2) |
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Third party 'knowing' that no authority |
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63 | (1) |
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No 'knowledge or belief' by third party as to membership |
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64 | (2) |
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66 | (1) |
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Vicarious liability for torts and other wrongs |
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67 | (4) |
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67 | (2) |
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69 | (2) |
| Chapter 6 Charges and Debentures |
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71 | (14) |
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71 | (1) |
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72 | (4) |
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72 | (1) |
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Particulars, and instrument of charge, to be sent to the Registrar |
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73 | (1) |
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74 | (1) |
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Power of the court to extend time and rectify |
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75 | (1) |
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The LLP's registers and copies |
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76 | (5) |
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76 | (1) |
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Register of debenture holders |
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77 | (2) |
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79 | (1) |
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Alternative inspection location |
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80 | (1) |
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Details of right of inspection |
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80 | (1) |
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81 | (4) |
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Re-issue of redeemed debentures |
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81 | (1) |
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Rights and position of debenture holders |
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81 | (1) |
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Liability of trustees of debentures |
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82 | (1) |
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Duty of LLP to issue debentures or certificates on allotment |
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83 | (1) |
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83 | (2) |
| Chapter 7 Conversion from a Partnership |
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85 | (8) |
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85 | (1) |
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85 | (1) |
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Stamp duty and stamp duty land tax |
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86 | (1) |
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Transfer of the partnership business and assets |
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86 | (1) |
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Customer/client contracts |
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87 | (1) |
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88 | (1) |
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88 | (1) |
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88 | (1) |
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89 | (1) |
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Professional indemnity insurance |
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89 | (1) |
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89 | (1) |
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90 | (1) |
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90 | (1) |
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Partnerships of accountants |
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91 | (2) |
| Chapter 8 Membership: General Matters |
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93 | (24) |
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93 | (1) |
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93 | (1) |
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94 | (2) |
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Changes in a member's name or address |
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96 | (1) |
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Notice in the 'London Gazette' |
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96 | (1) |
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Protection of residential addresses from disclosure |
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97 | (3) |
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100 | (2) |
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A member's share and interests |
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102 | (2) |
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Alienation of a share or interest |
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104 | (3) |
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107 | (1) |
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108 | (2) |
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110 | (1) |
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111 | (3) |
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People with significant control |
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114 | (3) |
| Chapter 9 Employment and Worker Status |
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117 | (16) |
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117 | (1) |
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Employment - the partnership law position |
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117 | (4) |
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Employment - the effect of section 4(4) |
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121 | (4) |
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125 | (3) |
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128 | (5) |
| Chapter 10 The LLP Agreement: General Principles |
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133 | (24) |
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LLP act 2000, section 5(1) |
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133 | (2) |
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135 | (3) |
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Execute before incorporation? |
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138 | (1) |
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139 | (1) |
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140 | (1) |
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Rescission and termination |
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141 | (1) |
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Rescission for misrepresentation |
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142 | (3) |
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Rescission of an agreement to form an LLP |
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143 | (1) |
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Rescission, either by the new member or by an existing member, of an agreement that a person join an existing LLP |
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144 | (1) |
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Rescission by one or more existing members of a new LLP agreement, a variation of an existing LLP agreement or a retirement agreement |
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144 | (1) |
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145 | (1) |
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145 | (8) |
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145 | (1) |
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The application of the doctrine to LLPs |
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146 | (4) |
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The consequences if the doctrine applies to LLPs |
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150 | (3) |
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153 | (1) |
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153 | (1) |
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153 | (1) |
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154 | (1) |
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154 | (3) |
| Chapter 11 The LLP Agreement: Contents |
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157 | (20) |
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157 | (1) |
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158 | (19) |
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158 | (1) |
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Accounts and accounting obligations |
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158 | (1) |
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159 | (1) |
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160 | (1) |
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161 | (1) |
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161 | (1) |
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162 | (1) |
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163 | (1) |
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Inspection of books and records, and obtaining information, by members |
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163 | (1) |
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Liability of members to third parties |
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163 | (1) |
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Liability of members to the LLP, and exclusions and indemnity |
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164 | (1) |
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Liability of members to other members, and exclusions and indemnity |
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165 | (1) |
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165 | (1) |
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Meetings, decision-making and management |
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166 | (1) |
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Assignment by a member of his share |
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167 | (1) |
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167 | (1) |
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Unfair prejudice and winding-up petitions |
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168 | (1) |
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168 | (1) |
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169 | (1) |
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169 | (2) |
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171 | (1) |
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171 | (3) |
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174 | (1) |
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Liability to contribute in a winding up |
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175 | (1) |
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175 | (1) |
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176 | (1) |
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176 | (1) |
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176 | (1) |
| Chapter 12 Designated Members |
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177 | (12) |
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177 | (1) |
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Appointment and retirement of designated members |
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178 | (2) |
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Option (i): specifying named members |
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178 | (1) |
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Option (ii): all members automatically designated members |
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179 | (1) |
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180 | (1) |
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Duties, responsibilities and powers of the designated members |
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180 | (7) |
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180 | (4) |
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184 | (3) |
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Designated members and the LLP |
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187 | (1) |
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188 | (1) |
| Chapter 13 Duties and Responsibilities of Members |
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189 | (30) |
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189 | (1) |
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189 | (1) |
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189 | (1) |
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189 | (1) |
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A member's duties to the LLP |
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190 | (17) |
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190 | (1) |
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191 | (10) |
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201 | (4) |
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Other (non-statutory) duties and responsibilities of a member to the LLP |
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205 | (2) |
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Statutory duties and responsibilities |
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207 | (5) |
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Duties and responsibilities on the members as a whole |
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207 | (1) |
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Duties (with penalties for non-compliance) on individual members |
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208 | (1) |
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LLP obligations: liability of members 'in default' |
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209 | (2) |
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Insolvency Act 1986 and Company Directors Disqualification Act 1986 |
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211 | (1) |
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A member's duties to his co-members |
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212 | (4) |
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212 | (1) |
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Good faith between negotiating parties |
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213 | (1) |
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214 | (1) |
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214 | (1) |
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Default duty to render 'true accounts' etc |
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215 | (1) |
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Express and implied contractual terms of good faith or mutual trust and confidence |
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216 | (1) |
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Duties in decision-making |
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217 | (2) |
| Chapter 14 Rights, Indemnities and Protection of Members |
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219 | (26) |
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219 | (1) |
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220 | (9) |
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Right to inspect the books and records of the LLP |
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220 | (7) |
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Right to obtain information from other members |
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227 | (1) |
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228 | (1) |
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Rights given by CA 2006 to every member |
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229 | (3) |
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229 | (2) |
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231 | (1) |
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Rights given by IA 1986 to Contributories |
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232 | (2) |
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Decision-making as to individual membership rights |
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234 | (1) |
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Excluding a member's liability to the LLP (and to other members) |
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234 | (2) |
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Discretionary power of court to relieve members from liability |
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236 | (2) |
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Claims by a member against the LLP |
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238 | (1) |
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Derivative claim by a minority of members |
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238 | (7) |
| Chapter 15 Discrimination and Whistleblower Protection |
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245 | (54) |
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245 | (1) |
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Discrimination protection |
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245 | (2) |
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Prohibited discriminatory conduct |
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247 | (3) |
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247 | (1) |
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248 | (1) |
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249 | (1) |
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249 | (1) |
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Instructing, causing or inducing discrimination |
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249 | (1) |
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250 | (1) |
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250 | (1) |
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Potentially permissible discriminatory treatment |
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250 | (1) |
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Territorial scope of discrimination law |
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251 | (3) |
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Time limits for discrimination claims |
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254 | (1) |
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Mandatory early conciliation in discrimination claims |
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254 | (1) |
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Burden of proof in discrimination claims |
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255 | (1) |
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256 | (3) |
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257 | (1) |
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257 | (1) |
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257 | (1) |
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258 | (1) |
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258 | (1) |
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Employment tribunal jurisdiction and arbitration provisions in an LLP agreement - which prevails? |
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259 | (1) |
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Common discrimination issues relating to LLP members |
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260 | (20) |
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Sexual harassment and bullying |
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260 | (5) |
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265 | (1) |
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Mandatory retirement ages |
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266 | (4) |
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Alternatives to a mandatory retirement age |
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270 | (1) |
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Further impact of age discrimination in LLPs |
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271 | (1) |
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Appointing on the basis of post-qualification experience |
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272 | (1) |
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272 | (1) |
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273 | (2) |
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Profit share entitlement for members |
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275 | (1) |
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276 | (2) |
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Maternity leave for LLP members |
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278 | (1) |
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Shared parental leave and pay |
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279 | (1) |
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Flexible working requests |
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279 | (1) |
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Disability discrimination |
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280 | (6) |
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280 | (1) |
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Direct disability discrimination |
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281 | (1) |
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Discrimination arising from a disability |
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282 | (1) |
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Duty to make reasonable adjustments |
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282 | (2) |
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Costs of making the adjustments |
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284 | (1) |
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Enquiries about disability and health |
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284 | (1) |
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Permanent health insurance/long-term disability cover |
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285 | (1) |
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Whistleblower and other 'worker' protections |
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286 | (4) |
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286 | (1) |
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287 | (1) |
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288 | (1) |
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288 | (1) |
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289 | (1) |
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Territorial scope of whistleblowing law |
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290 | (1) |
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Part-time worker protection |
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290 | (3) |
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Other quasi-employment law protections |
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293 | (1) |
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Discrimination litigation - an LLP member's access to information |
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294 | (1) |
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294 | (5) |
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294 | (2) |
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Informal request for information |
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296 | (3) |
| Chapter 16 Funding and Profits and Losses |
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299 | (8) |
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299 | (4) |
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303 | (4) |
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303 | (2) |
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305 | (2) |
| Chapter 17 The Business and Affairs of the LLP: Conduct and Decision-Making |
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307 | (26) |
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307 | (1) |
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Participation in the business and affairs of the LLP |
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307 | (2) |
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309 | (10) |
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Business connected matters |
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309 | (1) |
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Non-business connected matters |
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310 | (5) |
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315 | (1) |
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315 | (1) |
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Enforcement of individual members' participation rights |
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316 | (1) |
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316 | (2) |
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Delegation of statutory duties and powers given to the members as a whole? |
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318 | (1) |
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Death of a member or assignment of his share |
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319 | (1) |
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319 | (1) |
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Fetters on decision-making powers |
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319 | (14) |
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319 | (3) |
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322 | (3) |
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325 | (4) |
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329 | (1) |
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Consequences of invalidity |
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330 | (3) |
| Chapter 18 The Member and the Outside World |
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333 | (18) |
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333 | (1) |
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333 | (1) |
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334 | (1) |
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334 | (14) |
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334 | (12) |
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Excluding liability of member of LLP of auditors |
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346 | (1) |
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Other torts causing economic loss |
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347 | (1) |
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Joint liability with the LLP |
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347 | (1) |
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Individual status of certain professionals |
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348 | (1) |
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348 | (1) |
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Liability in an insolvent liquidation |
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349 | (2) |
| Chapter 19 Cessation of Membership and its Consequences |
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351 | (16) |
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351 | (1) |
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351 | (6) |
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Cessation by agreement or by 'reasonable notice' |
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351 | (3) |
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354 | (1) |
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Bankruptcy/liquidation of a member |
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355 | (1) |
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Expulsion/compulsory retirement |
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356 | (1) |
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Consequences of cessation of membership |
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357 | (4) |
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Notification to the Registrar and cessation of agency |
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357 | (1) |
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Obligations and rights of the outgoing member |
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357 | (4) |
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361 | (1) |
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No agreement as to entitlement on cessation |
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361 | (6) |
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Does a leaving member have a right to payment for the value of his 'share'? |
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362 | (1) |
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Does the 'share' of a leaving member survive cessation? |
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363 | (4) |
| Chapter 20 UK Financial Services Regulation and LLPs |
|
367 | (22) |
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367 | (1) |
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Regulated activities and the need for authorisation |
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367 | (7) |
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Obtaining FCA authorisation and being FCA-authorised |
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374 | (5) |
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Other regulatory requirements |
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379 | (1) |
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Collective investment schemes |
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379 | (5) |
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Day-to-day control over management |
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382 | (1) |
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Operated by way of business |
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383 | (1) |
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Commercial purposes for which entered into |
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384 | (1) |
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Alternative investment funds |
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384 | (5) |
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'Collective investment undertaking' |
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385 | (1) |
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Raising capital with a view to investment |
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386 | (1) |
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386 | (1) |
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387 | (2) |
| Chapter 21 Accounts and Audit |
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389 | (30) |
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389 | (1) |
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389 | (2) |
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391 | (2) |
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Individual accounts: IAS and non-IAS |
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393 | (10) |
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Non-IAS individual accounts |
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394 | (4) |
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Accounting standards and SORP |
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398 | (1) |
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399 | (1) |
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400 | (1) |
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401 | (1) |
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402 | (1) |
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403 | (1) |
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403 | (2) |
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404 | (1) |
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405 | (1) |
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Audit and auditors' report |
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405 | (4) |
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Approval of the annual accounts |
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409 | (1) |
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Filing accounts with the registrar |
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409 | (3) |
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Filing derogation for small LLPs |
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|
411 | (1) |
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Circulation and publication of accounts |
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412 | (1) |
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Revision of accounts and reports |
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|
413 | (2) |
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415 | (1) |
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Exemptions from audit requirements |
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|
415 | (4) |
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415 | (1) |
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416 | (1) |
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417 | (2) |
| Chapter 22 The Appointment and Position of Auditors of LLPs |
|
419 | (14) |
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419 | (1) |
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419 | (2) |
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421 | (1) |
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Requirements for appointment as auditors |
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422 | (1) |
|
Duties, and rights, of the auditors |
|
|
423 | (1) |
|
Omitting the name of the auditors |
|
|
424 | (1) |
|
Fixing the auditors' remuneration |
|
|
424 | (1) |
|
Termination of appointment |
|
|
424 | (3) |
|
|
|
427 | (3) |
|
|
|
430 | (1) |
|
Notification of cesser of appointment to the appropriate audit authority |
|
|
430 | (1) |
|
|
|
431 | (1) |
|
Indemnities and liability limitation agreements |
|
|
432 | (1) |
| Chapter 23 Taxation of LLPs and Members |
|
433 | (48) |
|
|
|
433 | (2) |
|
Computation of taxable profits |
|
|
435 | (14) |
|
|
|
435 | (1) |
|
|
|
436 | (4) |
|
|
|
440 | (8) |
|
Associates and connected persons |
|
|
448 | (1) |
|
Individual members' taxation |
|
|
449 | (13) |
|
|
|
450 | (1) |
|
Change of accounting reference date |
|
|
451 | (1) |
|
|
|
452 | (1) |
|
|
|
452 | (2) |
|
|
|
454 | (5) |
|
Partnership annuity payments |
|
|
459 | (1) |
|
Partnership annuity transfers |
|
|
460 | (1) |
|
|
|
460 | (1) |
|
|
|
461 | (1) |
|
Partial incorporation to an LLP |
|
|
462 | (1) |
|
National insurance contributions |
|
|
463 | (1) |
|
|
|
463 | (2) |
|
Contribution of assets to a partnership |
|
|
464 | (1) |
|
|
|
465 | (1) |
|
|
|
465 | (1) |
|
|
|
466 | (1) |
|
Stamp duty land tax (SDLT) |
|
|
467 | (2) |
|
|
|
469 | (1) |
|
|
|
470 | (1) |
|
|
|
470 | (1) |
|
Anti-avoidance legislation |
|
|
471 | (1) |
|
|
|
472 | (3) |
|
|
|
475 | (3) |
|
UK branches of overseas LLPs |
|
|
478 | (3) |
| Chapter 24 Investigations, Striking Off and Rectification of the Register |
|
481 | (20) |
|
Government power to investigate or require information |
|
|
481 | (7) |
|
|
|
481 | (1) |
|
Investigation by inspectors |
|
|
481 | (4) |
|
Direction to LLP to produce documents and provide information |
|
|
485 | (1) |
|
|
|
486 | (1) |
|
|
|
486 | (1) |
|
Permitted disclosure only |
|
|
487 | (1) |
|
Investigation by Secretary of State |
|
|
487 | (1) |
|
Applications to court by Secretary of State |
|
|
487 | (1) |
|
Striking the LLP's name off the register |
|
|
488 | (9) |
|
|
|
488 | (1) |
|
Striking off on the Registrar's initiative |
|
|
489 | (1) |
|
Striking off on application by members |
|
|
490 | (2) |
|
|
|
492 | (5) |
|
Rectification of the register |
|
|
497 | (4) |
| Chapter 25 LLPs in Other Jurisdictions |
|
501 | (22) |
|
|
|
501 | (2) |
|
|
|
503 | (20) |
|
|
|
503 | (11) |
|
Non-corporate entity LLPs |
|
|
514 | (9) |
| Chapter 26 Foreign Connections and Dealing with Overseas LLPs |
|
523 | (22) |
|
Foreign connections of UK LLPs |
|
|
523 | (3) |
|
|
|
523 | (1) |
|
Jurisdiction over UK LLPs |
|
|
524 | (2) |
|
|
|
526 | (19) |
|
Requirements for carrying on business in the UK |
|
|
526 | (1) |
|
Company Directors Disqualification Act 1986, s 11 |
|
|
527 | (1) |
|
Jurisdiction of English court over overseas LLPs |
|
|
528 | (4) |
|
Recognition of limited liability of overseas LLP members |
|
|
532 | (13) |
| Chapter 27 Insolvency and Winding up of LLPs: A General Introduction |
|
545 | (2) |
|
|
|
545 | (2) |
| Chapter 28 Moratorium and Voluntary Arrangements |
|
547 | (6) |
|
|
|
547 | (1) |
|
|
|
548 | (5) |
|
|
|
548 | (2) |
|
Consideration of the proposal |
|
|
550 | (1) |
|
Challenge to the voluntary arrangement |
|
|
551 | (1) |
|
Administration of the voluntary arrangement |
|
|
552 | (1) |
| Chapter 29 Administration |
|
553 | (10) |
|
|
|
553 | (1) |
|
|
|
554 | (1) |
|
Appointment of administrator by holder of floating charge |
|
|
555 | (1) |
|
Appointment of administrator by LLP |
|
|
556 | (1) |
|
|
|
557 | (1) |
|
Statement of LLP's affairs |
|
|
557 | (1) |
|
Administrator's proposals and creditors' approval |
|
|
558 | (1) |
|
Conduct of the administration |
|
|
559 | (4) |
|
Functions of administrator |
|
|
559 | (1) |
|
|
|
559 | (1) |
|
|
|
560 | (1) |
|
|
|
560 | (3) |
| Chapter 30 Receivership |
|
563 | (6) |
|
|
|
563 | (1) |
|
Limitation on the appointment of administrative receivers |
|
|
564 | (1) |
|
|
|
565 | (1) |
|
|
|
565 | (2) |
|
|
|
565 | (1) |
|
|
|
566 | (1) |
|
Statement of affairs in administrative receivership |
|
|
567 | (1) |
|
Administrative receiver's report |
|
|
567 | (2) |
| Chapter 31 Commencement of Winding Up |
|
569 | (14) |
|
|
|
569 | (3) |
|
Types of voluntary winding up |
|
|
570 | (2) |
|
|
|
572 | (2) |
|
|
|
573 | (1) |
|
Failure to commence business within a year or suspension of business |
|
|
573 | (1) |
|
|
|
573 | (1) |
|
Just and equitable winding up |
|
|
574 | (1) |
|
Application for a winding-up order |
|
|
574 | (5) |
|
Who can present a petition? |
|
|
574 | (1) |
|
|
|
575 | (1) |
|
|
|
576 | (1) |
|
|
|
577 | (1) |
|
Other possible petitioners |
|
|
578 | (1) |
|
|
|
578 | (1) |
|
Functions of official receiver and appointment of a liquidator |
|
|
579 | (4) |
| Chapter 32 Unfair Prejudice and Just and Equitable Winding Up |
|
583 | (16) |
|
|
|
583 | (1) |
|
|
|
583 | (4) |
|
Companies Act 2006, s 994 |
|
|
583 | (3) |
|
|
|
586 | (1) |
|
Insolvency Act 1986, s 122 |
|
|
586 | (1) |
|
Who can present a petition? |
|
|
587 | (1) |
|
Application of statutory provisions to LLPs |
|
|
588 | (11) |
|
|
|
588 | (1) |
|
|
|
589 | (2) |
|
|
|
591 | (1) |
|
|
|
592 | (1) |
|
Breakdown of relationship between members |
|
|
593 | (6) |
| Chapter 33 Conduct of the Liquidation |
|
599 | (10) |
|
|
|
599 | (1) |
|
Status of members' claims |
|
|
599 | (5) |
|
Disclaimer of onerous property |
|
|
604 | (1) |
|
|
|
605 | (1) |
|
Crown preference and top slicing |
|
|
606 | (3) |
| Chapter 34 Misfeasance and Adjustment of Prior Transactions |
|
609 | (20) |
|
Malpractice and misfeasance |
|
|
609 | (1) |
|
|
|
610 | (1) |
|
|
|
611 | (3) |
|
Adjustment of withdrawals |
|
|
614 | (2) |
|
Transactions at an undervalue |
|
|
616 | (3) |
|
|
|
619 | (1) |
|
Extortionate credit transactions |
|
|
620 | (1) |
|
Avoidance of floating charges |
|
|
621 | (1) |
|
Unenforceability of liens |
|
|
622 | (1) |
|
Transactions defrauding creditors |
|
|
623 | (1) |
|
|
|
624 | (5) |
| Chapter 35 Completion of the Winding Up and Dissolution |
|
629 | (4) |
|
|
|
629 | (1) |
|
|
|
629 | (1) |
|
|
|
630 | (1) |
|
Consequences of dissolution |
|
|
631 | (2) |
| Chapter 36 Arrangements and Reconstructions |
|
633 | (4) |
|
|
|
633 | (1) |
|
Companies Act 2006, sections 895 to 900 |
|
|
633 | (1) |
|
Insolvency Act 1986, section 110 |
|
|
634 | (1) |
|
Companies (Cross-Border Mergers) Regulations |
|
|
635 | (2) |
| Chapter 37 Disqualification |
|
637 | (18) |
|
The legislation and the scope of a disqualification order |
|
|
637 | (4) |
|
|
|
641 | (5) |
|
|
|
644 | (1) |
|
Collegiate responsibility |
|
|
645 | (1) |
|
Other grounds for disqualification |
|
|
646 | (5) |
|
|
|
651 | (1) |
|
Consequences of contravention |
|
|
652 | (1) |
|
Applications for leave to act |
|
|
653 | (2) |
| Appendix 1 Limited Liability Partnerships Act 2000 |
|
655 | (18) |
| Appendix 2 Limited Liability Partnerships Regulations 2001, SI 2001/1090 |
|
673 | (8) |
| Index |
|
681 | |