I attended the CPA (Australia) Council meeting today. We had a special session to discuss the LLP concept introduced by the CCM. The Company Commission of Malaysia (CCM) has recently drafted a proposal for the passing of a new bill: Limited Liability Partnership (LLP). The CCM recommends that the LLP should be a vehicle afforded to all business and not merely certain professional groups. It believes that the LLP provides businessmen and investors the flexibility to select the best business entity suited for its business. The proposed LLP Act will confer a separate legal entity status on the LLP - one that is distinct from its partners that will come into existence upon registration of the business entity.Partners of the LLP will be accorded limited liability in respect of tort and contractual claims. However, it will not insulate a partner of the LLP which he would otherwise incur by his own wrongful act or omission, even though such acts were carried out in his role as a partner of the LLP.
Well, for ARI, this is an opportunity for members to embark on an applied research on LLP among the accounting professionals. Research feedback would certainly be an important input to such proposal
