The Cabinet on Wednesday cleared amendments to the Limited Liability Partnership (LLP) Act of 2008, to whittle down several provisions, Finance and Corporate Affairs Minister Nirmala Sitharaman said.
The amendments also include a new definition for small LLPs and would benefit the 2.3 lakh LLP firms currently operational in the country, the Minister said. Law-abiding corporates were to get Ease of Doing Business benefits and part of the criminality related sections would be replaced with penalties.
Of the 24 penal provisions in the Act, one would be omitted and a total of 12 cognisable offences were being decriminalised, the Minister said. As many as 21 of the provisions are compoundable offences, which the amendments propose to whittle down to just seven.
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