Limited Liability Partnership (LLP) Act

In News:

The Corporate Affairs Ministry is planning to decriminalise 12 offences as well as omit a provision entailing criminal liability under the Limited Liability Partnership (LLP) Act, 2008, for greater ease of doing business for law-abiding LLPs.

What is a LLP?

A Limited Liability Partnership (LLP) is a partnership in which some or all partners have limited liability. It therefore exhibits elements of partnerships and corporations.

In an LLP, one partner is not responsible or liable for another partner’s misconduct or negligence.

Salient features of an LLP:

An LLP is a body corporate and legal entity separate from its partners. It has perpetual succession.

Being the separate legislation (i.e. LLP Act, 2008), the provisions of Indian Partnership Act, 1932 are not applicable to an LLP and it is regulated by the contractual agreement between the partners.

Every Limited Liability Partnership shall use the words “Limited Liability Partnership” or its acronym “LLP” as the last words of its name.

Composition:

Every LLP shall have at least two designated partners being individuals, at least one of them being resident in India and all the partners shall be the agent of the Limited Liability Partnership but not of other partners.

Need for and significance LLP:

LLP format is an alternative corporate business vehicle that provides the benefits of limited liability of a company but allows its members the flexibility of organizing their internal management on the basis of a mutually arrived agreement, as is the case in a partnership firm.

This format would be quite useful for small and medium enterprises in general and for the enterprises in services sector in particular.

Internationally, LLPs are the preferred vehicle of business particularly for service industry or for activities involving professionals.

Square Kilometre Array

In News:

On 4th Feb, the Square Kilometre Array Observatory (SKAO) Council held its maiden meeting and approved the establishment of the world’s largest radio telescope.

About SKAO:

SKAO is a new intergovernmental organisation dedicated to radio astronomy and is headquartered in the UK.

At the moment, organisations from ten countries are a part of the SKAO.

These include Australia, Canada, China, India, Italy, New Zealand, South Africa, Sweden, the Netherlands and the UK.

What are radio telescopes?

Unlike optical telescopes, radio telescopes can detect invisible gas and, therefore, they can reveal areas of space that may be obscured by cosmic dust.

The first radio signals were detected by physicist Karl Jansky in the 1930s.

The Arecibo telescope in Puerto Rico, which was the second-largest single-dish radio telescope in the world, collapsed in December 2020. The telescope was built in 1963.

About SKA Telescope:

The telescope is proposed to be the largest radio telescope in the world.

It will be located in Africa and Australia whose operation, maintenance and construction will be overseen by SKAO.

The completion is expected to take nearly a decade at a cost of over £1.8 billion.

Registration of political parties

As per Association For Democratic Reforms (ADR)’s latest report:

The contribution reports of only 78 (3.39%) of the total 2,301 registered unrecognised political parties are available in the public domain for 2018-19.

The reports of only 82 such parties (3.56%) for 2017-18 are uploaded on the respective State Chief Electoral Officers’ websites.

The number of these parties increased two-fold in the last 10 years, from 1,112 in 2010 to 2,301 in 2019.

What are unrecognised political parties?

Either newly registered parties or those which have not secured enough percentage of votes in Assembly or General Elections to become a State party or those which have never contested in elections since being registered are considered unrecognised parties. Such parties don’t enjoy all the benefits extended to the recognised parties.

Unrecognised political parties in India:

There are 2,360 political parties registered with the Election Commission of India and 2,301 or 97.50% of them are unrecognised.

Registration of political parties:

Registration of Political parties is governed by the provisions of Section 29A of the Representation of the People Act, 1951.

A party seeking registration under the said Section with the Election Commission has to submit an application to the Commission within a period of 30 days following the date of its formation as per guidelines prescribed by the Election Commission of India in exercise of the powers conferred by Article 324 of the Commission of India and Section 29A of the Representation of the People Act, 1951.

To be eligible for a ‘National Political Party of India:

It secures at least six percent of the valid votes polled in any four or more states, at a general election to the House of the People or, to the State Legislative Assembly.

In addition, it wins at least four seats in the House of the People from any State or States.

It wins at least two percent seats in the House of the People (i.e., 11 seats in the existing House having 543 members), and these members are elected from at least three different States.

To be eligible for a ‘State Political Party:

It secures at least six percent of the valid votes polled in the State at a general election, either to the House of the People or to the Legislative Assembly of the State concerned

In addition, it wins at least two seats in the Legislative Assembly of the State concerned.

It wins at least three percent (3%) of the total number of seats in the Legislative Assembly of the State, or at least three seats in the Assembly, whichever is more.

Benefits:

If a party is recognised as a State Party’, it is entitled for exclusive allotment of its reserved symbol to the candidates set up by it in the State in which it is so recognised, and if a party is recognised as a National Party’ it is entitled for exclusive allotment of its reserved symbol to the candidates set up by it throughout India.

Recognised State’ and `National’ parties need only one proposer for filing the nomination and are also entitled for two sets of electoral rolls free of cost at the time of revision of rolls and their candidates get one copy of electoral roll free of cost during General Elections.

They also get broadcast/telecast facilities over Akashvani/Doordarshan during general elections.

The travel expenses of star campaigners are not to be accounted for in the election expense accounts of candidates of their party.