alleryStart learning →When does the liability of an LLP and its partners become unlimited?
AWhen capital is yet unpaid
BOn acts done to defraud creditors
CWhen designated partners resign
DWhen turnover crosses a limit
Answer & Solution
Correct answer: B. On acts done to defraud creditors
Where acts are done with intent to defraud creditors or for any fraudulent purpose, liability is unlimited for the debts.
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