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The Ministry of Company Affairs has notified the concept paper on Limited Liability Partnership (LLP) inviting public comments. The main purpose of this Concept Paper is to create a basic framework, which will facilitate the creation of a new legal entity in India viz. the limited liability partnership (”LLP”). The essential feature of an LLP is that it combines the organisational flexibility and tax status of a partnership with limited liability for its partners. An LLP is a body corporate having perpetual succession and separate legal entity.

In India, a concept paper on Limited Liability Partnership Law was brought out by the Ministry of Company Affairs in 2005. In the year 2006 the Limited Liability Partnership Bill was introduced in the Parliament. In October 2008, the said Ministry has proposed a new Limited Liability Partnership Bill 2008, which has been submitted to the Parliament for its approval.

In the United Kingdom LLPs are governed by the Limited Liability Partnerships Act 2000 (in England and Wales) and the Limited Liability Partnerships Act (Northern Ireland) 2002 in Northern Ireland. A UK Limited Liability Partnership is a Corporate body - that is to say, it has a continuing legal existence independent of its Members, as compared to a Partnership which may (in England and Wales they do not) have a legal existence dependent upon its Membership.

A UK LLP’s members have a collective (”Joint”) responsibility, to the extent that they may agree in an “LLP agreement”, but no individual (”several”) responsibility for each other’s actions. As with a limited company or a corporation Members in an LLP cannot, in the absence of fraud or wrongful trading, lose more than they invest.

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Choosing name of the firm: The firm has to choose the name of the firm carefully since it would act as a brand and goodwill be created in the books. Read more.

In the United States, each individual state has its own law governing their formation. Limited liability partnerships emerged in the early 1990s: while only two states allowed LLPs in 1992, over forty had adopted LLP statutes by the time LLPs were added to the Uniform Partnership Act in 1996.[7]

The limited liability partnership was formed in the aftermath of the collapse of real estate and energy prices in Texas in the 1980s. This collapse led to a large wave of bank and savings and loan failures. Because the amounts recoverable from the banks was small, efforts were made to recover assets from the lawyers and accountants that had advised the banks in the early-1980s. The reason was that partners in law and accounting firms were subject to the possibility of huge claims which would bankrupt them personally, and the first LLP laws were passed to shield innocent members of these partnerships from liability [8]

Although found in many business fields, the LLP is an especially popular form of organization among professionals, particularly lawyers, accountants and architects. In some U.S. states, namely California, New York, Oregon and Nevada, LLPs can only be formed for such professional uses. Formation of an LLP typically requires filing certificates with the county and state offices. Although specific rules vary from state to state, all states have passed variations of the Revised Uniform Partnership Act.

The liability of the partners varies from state to state. Section 306(c) of the Revised Uniform Partnership Act (1997)(RUPA) (a standard statute adopted by a majority of the states) grants LLPs a form of limited liability similar to that of a corporation.

Prem Sikka in Guardian discusses on Auditors fees for giving a clean chit to the companies whose survival is doubtful now.

“The deepening financial crisis brings daily news of corporate collapses and bailouts that plunder the taxpayers’ pockets at an unprecedented scale. Innocent people are losing jobs, homes, pensions and investments. Each collapse shows that highly paid directors had little idea of the value of company assets, liabilities, income, costs, profits and financial health. This has been accompanied by one constant factor: the silence of the auditors. Auditors collected large amounts in fees and dished out clean bills of health.”

The government of Iceland has taken control of Glitnir, the third largest bank in the country, and injected €600m. The bank’s 2007 accounts received a clean bill of health (page 69) from PricewaterhouseCoopers with an assurance, “We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion”. Auditors collected (page 93) ISK364m (£1.8m) in fees, including ISK218m in consultancy fees.

Read the full article on Guardian

The salaries of the companies that failed

Lehman Brothers - Richard Fuld $ 715 K salary and $ 6.20 million bonus. According to New York Times, he took half a billion dollars in compensation between 1993 - 2007.

Mail on Sunday reports Senior staff at beleaguered Northern Rock have received secret bonuses doubling their salaries ?

Moving around: A slide allows quick access from different floors … There are also poles available … they are similar to the ones used in fire stations.

Food: Employees can eat all they want from a vast choice of food and drink.

Work Station: Each employee has at least two large screens. There are 4-6 ‘Zooglers’ per office.

INNOVATION: Large boards are available just about everywhere because “ideas don’t always come when seated in the office” says one of Google’s managers.

Communication… On each floor, there are private cabin areas where employees can attend to personal affairs.

Technical Support: Problem with your computer ? No problem … Bring it to this area where drinks are available while it is being fixed.

Health: Professional masseurs (eusses) available.

REST: This room provides massage chairs that you control … while you view relaxing aquariums … !!! Ambiance … There are many books in this library … even some about programming !!

I had been to SAP Office near Heathrow, UK and it is really fantastic. I believe that people who come to the building arrange their meetings around the lunch time …. food is excellent.

If you have a link your workplace, share it as a comment on the blog. Or share about the excellent workplaces in the world.

Regards,

Santosh Puthran

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In apparent bid to further promote the accountancy profession in Nigeria, The Institute of Chartered Accountants of Nigeria, ICAN, and the Association of Chartered Certified Accountants, ACCA, of the United Kingdom have signed a Memorandum of Understanding on mutual cooperation.

The memorandum is a befitting sequel to the landmark agreement reached in February this year. The two bodies had agreed last February when the Global President of ACCA, Mrs. Gillian Ball visited Nigeria.

This led to first ICAN and ACCA bilateral meeting, which took place at the ICAN secretariat on Wednesday, February 6, 2008. The ACCA team, led by Ms Ball and the ICAN team led by Prince Ade Babington-Ashaye, both agreed the terms of reference of the Bilateral Committee as well as resolved to collaborate on a number of areas to develop the Accountancy profession.

A statement issued at the end of the MOU signing stated, “ In recognition of the value of promoting mutual co-operation for the advancement of the accountancy profession and the public interest, both ICAN and ACCA, thus agreed to enter into the MOU, which was made towards the end of May, 2008.

The MOU provides for the establishment of mutual cooperation between these two Institutions, both members of the International Federation of Accountants, IFAC; and also agrees that the Bilateral Committee, which was actually established in Istanbul, Turkey on November 14, 2006, shall continue to meet twice a year as resolved at the inaugural meeting held in Lagos, Nigeria, during the ACCA Global President’s visit to ICAN.

By the terms of the MOU, both ICAN and ACCA have agreed to collaborate in further developing and promoting the Accountancy Profession; identify ways in which they can work together to support their respective members in Nigeria and UK; strengthen regular communication links between both bodies; determine a road-map towards achieving a long-term mutually beneficial partnership between them; as well as review and, where appropriate, work together to address common issues in the national, regional and international Accountancy Profession.”

“Other areas of cooperation covered by the MOU include: Sharing information on financial and non-financial reporting issues, particularly in the implementation of International Financial Reporting Standards (IFRSs) and sustainability reporting, and joint research into technical accounting and related topics.

Source: Vanguard

Cheers,

Santosh Puthran

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The internet audience for ACCA’s Student Engage reached record figures this year. The webcast, aimed at students of the Association of Chartered Certified Accountants (ACCA) and broadcast by web TV agency BroadView, achieved almost three times the number of viewers compared with this time last year.

Student Engage has been viewed 32,000 times since it was broadcast on 23 April this year. This is a significant increase on 2007’s viewing figures and clearly demonstrates a demand for web 2.0 as a means of really engaging with the next generation of accountancy students.

Click here to Watch Engage 2008 Web broadcast

ACCA chief executive, Allen Blewitt and president, Gill Ball answered members’ questions in another successful ACCA Engage live web-broadcast which took place on 23 April 2008.

Over 200 questions were submitted for the event with Allen and Gill answering issues ranging from global recognition to maintaining professional standards.

“Access to the web and all of the rich educational content it offers should be a key component of every student’s education. By working with ACCA we’re developing the toolset of the next generation of accountants, but new media ought to be used across a broader range of academic disciplines,” said Stuart Maister, managing director of BroadView.

AGM 2008

ACCA’s 103rd annual general meeting (AGM) took place on Thursday 15 May 2008.

Click here to View the web broadcast

Source:

1. utalkmarketing
2. ACCA website

This presentation will give you an insight into the ICAEW’s plans to raise the profile of the Institute and the ACA qualification in 2008. It explains advertising is important for the ICAEW, UK and its members and what advertising looks like and where to look out for the campaign.

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This presentation will give you an insight into the ICAEW’s plans to raise the profile of the Institute and the ACA qualification in 2008. It explains advertising is important for the ICAEW, UK and its members and what advertising looks like and where to look out for the campaign.

Click here for more details

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Meet the companies that make up this year’s list, as determined by BusinessWeek and the Boston Consulting Group

Our ranking of the World’s Most Innovative Companies, a collaboration with the innovation practice of the Boston Consulting Group, is our most global list ever. It’s also determined by a broader set of data than in the past. In addition to the votes cast in our annual survey—which receive the heaviest weighting in our results—we also weighed companies’ three-year margin growth, revenue growth, and total shareholder return*.

The result: Plenty of new names, including Tata Group, Nintendo (NTDOY), and Reliance Industries. Check them out.

Click here to read the full article on Business Week

Cheers,

Santosh Puthran

Are you looking for something ? You will find it in MA Stores

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Meet the companies that make up this year’s list, as determined by BusinessWeek and the Boston Consulting Group

Our ranking of the World’s Most Innovative Companies, a collaboration with the innovation practice of the Boston Consulting Group, is our most global list ever. It’s also determined by a broader set of data than in the past. In addition to the votes cast in our annual survey—which receive the heaviest weighting in our results—we also weighed companies’ three-year margin growth, revenue growth, and total shareholder return*.

The result: Plenty of new names, including Tata Group, Nintendo (NTDOY), and Reliance Industries. Check them out.

Click here to read the full article on Business Week

Cheers,

Santosh Puthran

Are you looking for something ? You will find it in MA Stores

US Stores
UK Stores
Digital Stores, US