Solvent in relation to a Limited Liability Partnership, means the ability of the partnership to pay its debts as they become due in the ordinary course of business
A Limited Liability Partnership is to lodge with the Registrar a declaration by one of its managers that in the opinion of the manager, the partnership either appears, as at that date, to be solvent or does not appear, as at that date, to be solvent.
The declaration is lodged not later than fifteen months after the registration of the Limited Liability Partnership and subsequently once in every calendar year at intervals of not more than fifteen months. However, the Registrar may, on an application by a limited liability partnership, extend the period within which the declaration may be lodged.
When a limited liability partnership fails to lodge the declaration within the statutory period or within the extended period the partnership commits an offence and is liable to a fine not exceeding one hundred thousand shillings.
A manager of a Limited Liability Partnership that makes a declaration without having reasonable grounds for believing that the partnership is solvent, commits an offence and is liable on conviction if the manager is a natural person, to a fine not exceeding one hundred thousand shillings or to imprisonment for a term not exceeding twelve months, or to both; or if the manager is a body corporate, to a fine not exceeding fifty thousand shillings.
A declaration of solvency or insolvency is lodged in the form LLP l0, Declaration of Solvency or Insolvency set out in the First Schedule the Limited Liability Partnership Regulations, 2014 at a cost of Kshs 2000. No document is issued by the registry as the changes are reflected immediately on the records.
REFERENCES
Limited Liability Partnership Act, 2011 Chapter 30A
Limited Liability Partnership Regulations, 2014
