Limited Liability Partnerships (Application of Company Law) (No 2) Regulations 2024

The Limited Liability Partnerships (Application of Company Law) (No 2) Regulations 2024 represent a significant update in the regulatory framework governing Limited Liability Partnerships (LLPs) in the UK. These regulations, made on 29^th October 2024, and laid before Parliament on the 31^st October 2024, aim to enhance the application of company law to LLPs, ensuring greater +transparency within the business structure.

Key features

The regulations are officially cited as the Limited Liability Partnerships (Application of Company Law) (No 2) Regulations 2024 and extend to England, Wales, Scotland, and Northern Ireland. They come into force in alignment with the provisions of the Economic Crime and Corporate Transparency Act 2023.

Amendments to Existing Regulations

The regulations amend the Limited Liability Partnerships (Application of Companies Act 2006) Regulations 2009 by updating various provisions to reflect current legal standards and practices. These include modifications to definitions and the application of disqualification criteria for LLP members.

Registrar’s Powers

A notable addition is the registrar’s power to strike off LLPs registered on a false basis. This provision allows the registrar to remove an LLP from the register if there is reasonable cause to believe that any information provided during registration is misleading or false in a material way.

Disqualified Members

The regulations clarify the conditions under which individuals may be disqualified from becoming members of an LLP, aligning these conditions more closely with those applicable to companies under the Companies Act 2006.

Enhanced Compliance Measures

By integrating stricter compliance measures, the regulations aim to combat economic crime and enhance corporate transparency. This is particularly relevant in the context of increasing scrutiny over business practices and the need for accountability in corporate governance.

Implications for LLPs

The introduction of these regulations is expected to have several implications for LLPs including increased accountability, greater transparency and legal clarity. If you have any questions regarding The Limited Liability Partnerships (Application of Company Law) (No 2) Regulations 2024 please get in touch with Business Desk at Pepperells Solicitors.