CA Inter P2 · Chapter 11 · Question 5 of 11
In the absence of an LLP agreement on the matter, the First Schedule to the LLP Act provides that the partners shall share the capital, profits and losses of the LLP:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Equally
Explanation
Under section 23(4), where no LLP agreement exists or it is silent on a matter, the First Schedule applies. Paragraph 1 of the First Schedule provides that the mutual rights and duties of the partners are determined so that all partners are entitled to share equally in the capital, profits and losses of the LLP.
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