ICANBusiness LawPartnership Law2023

Under the provisions of Part C of the Companies and Allied Matters Act (CAMA) 2020, which of the following statements correctly describes the legal status and liability of partners in a Limited Liability Partnership (LLP) registered in Nigeria?

AIt is an unincorporated association where all partners bear joint and several unlimited personal liability for the debts of the firm
BIt is a body corporate with a legal entity separate from its partners, and partners are generally not personally liable for the obligations of the LLPCORRECT
CIt requires at least one general partner with unlimited liability and at least one limited partner whose liability is limited to their capital contribution
DIt lacks perpetual succession and automatically dissolves upon the death, insanity, or bankruptcy of any partner
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Why the answer is B, and why the others tempt you.
Under Section 746(1) of CAMA 2020, a Limited Liability Partnership (LLP) is a body corporate formed and incorporated under the Act with legal personality separate from its partners, possessing perpetual succession. Furthermore, under Section 769 of CAMA 2020, an LLP partner is not personally liable directly or indirectly for the liabilities or obligations of the LLP solely by reason of being a partner. Option C describes a Limited Partnership (LP) under Part D, not an LLP under Part C.
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