Changing of company into an LLP
A HUF 'xyz' is an investor (major shareholder) in Company 'ABC'.
On conversion of a company 'ABC' to a LLP -
1. Can an HUF 'xyz' be a member of the newly-formed LLP?
2. If yes, please state the sections and law.
3. If no, what can be the solution to this problem?
If HUF 'xyz' cannot be a member of newly-converted LLP than there are 2 options i'm left with -
1. Either sell the investments held by HUF 'xyz' to it's members 'x', 'y' and 'z'. (But we don't have that kind of money).
2. Or dissolve the HUF (partition of HUF) and distribute the investments (shares of Company 'ABC') to it's member.
Is their any 3rd option? More suitable, viable and feasible option.
Asked 7 years ago in Business Law