Question Tag: Limited Liability Partnership

a. Francis died without a Will, leaving a widow and five children. He has ₦20 million in his bank account.

Required:
i. Explain how Francis died under the law of administration of estates and the steps that the children of Francis must take to withdraw the money in the bank. (3 Marks)
ii. Explain what is meant by an administrator and differentiate him from an executor. (2 Marks)

b. Margaret has been working for Neki Limited for three years as a clerk without a letter of appointment but has been paid monthly salary regularly. On the last working day of a month, Margaret was handed her salary for that month and a letter terminating her appointment with immediate effect.

Required:
i. Explain briefly TWO ways in which Margaret’s rights as an employee have been violated by Neki Limited. (5 Marks)

c. “For a limited liability partnership to be incorporated, two or more persons associated for carrying on a lawful business with a view to making a profit shall subscribe their names to an incorporation document” – Section 753 (1) Companies and Allied Matters Act 2020.

Required:
i. Under the Companies and Allied Matters Act 2020, state the kind of books of account that a limited liability partnership must maintain.
ii. State the system of accounting that a limited liability partnership must comply with.
iii. State the title of the account the limited liability partnership must prepare.
iv. Within what period of time from the end of a financial year must a limited liability partnership prepare its accounts?
v. How long after the closure of its financial year must a limited liability partnership file its annual returns? (1 Mark each = 5 Marks)

d. A contract is a legally binding agreement with mandatory elements.

Required:
State TWO categories of persons with limited capacity to contract and THREE exceptions to the rule of privity of contract. (5 Marks)