Change in designated partner is one of the most important part of LLP. Every LLP has a minimum of 2 members out of them 2 should be a designated partner. Once we appoint a partner we can change, remove or appoint them.
Why we need to change designated partner?
We are required to change designated partners for the following reasons:
- If the existence partner is not able to contribute his/her full time after a certain period of time due to retirement or any other reasons then we need to change the designated partner.
- In every company we need 2 designated partners and if in some circumstances the total designated partner reduces to 1 then we need to appoint a new designated partner and change the position of existing partner.
- In terms of partnership, it is an agreement among the partners and the change can arise anytime from one or another side due to this the addition or removal of partner may arise.