Abstract
This chapter explores the development and nature of a limited liability partnership (LLP), created under the Limited Liability Partnerships Act 2000 (LLP Act). Under the Act, any two or more persons (individuals or companies) may form an LLP as an alternative to a partnership, a limited partnership, and a private company. The impetus for LLP came from large accountancy firms concerned by the potential liability of partners for substantial damages awarded against them for the negligence of one partner, often in a totally different office. The aim was to set up a new entity which would preserve the internal informality of the traditional partnership whilst giving the partners limited liability for the debts of the firm. The chapter analyses the provisions of the LLP Act, and the other major sources of laws covering LLPs.
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