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Conversion of a private company into an LLP requires that:
AAt least 75% of partners agree
BOnly the Board approves
CALL shareholders of the private company become partners of the LLP, with no other person being a partner
DCentral Government approval is mandatory
Answer & Solution
Correct answer: C. ALL shareholders of the private company become partners of the LLP, with no other person being a partner
1. Schedule III of the LLP Act — all shareholders of the private company must become partners of the LLP at conversion; no third party may be inducted.
2. ROC approval and creditors' consent are required.
3. Hence (B).
_Source: ICAI BoS CA Inter Paper 2 — Limited Liability Partnership Act 2008_