Which one of the following is not a feature of Limited Liability Partnership firm?
- APartners should be less than 20Correct
- BPartnership and management need not be separate
- CInternal governance may be decided by mutual agreement among partners
- DIt is corporate body with perpetual succession
Explanation
The correct answer is A because the Limited Liability Partnership Act of 2008 does not prescribe a maximum limit on the number of partners. While an LLP must have a minimum of two partners, there is no upper limit of 20. The restriction of 20 partners historically applied to traditional partnership firms under older laws, but not to the modern LLP structure.
Regarding the other options: B is a feature because LLPs allow partners to manage the business directly. C is a feature because partners are free to draft their own LLP agreement to govern internal operations. D is a feature because an LLP is a legal entity separate from its partners and continues to exist regardless of changes in partnership.
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