To know the answer for this question, first we need to understand who is a CEO. A chief executive officer is the position of the most senior corporate officer, executive, leader or administrator in charge of managing an organization. His primary responsibilities include making major corporate decisions and managing the overall operations and resources of an organization.

So an Indian LLP can have a CEO for the purposes of internal management. The concept of having a CEO is not limited to corporate. A person who fulfills the above mentioned criteria is said to be a CEO whether in a company or a partnership firm or a limited liability partnership. The title of CEO is not created by the law. If any person is managing all the work and presenting himself as a leader among other partners with their consent, he can be termed to be the CEO of that LLP.

Technically, a limited liability partnership has partners and designated partners & no officers. There is no such designation of chief executive officer in the scenario as LLP in India is governed by LLP Act where there is no provision to appoint key managerial personnel like MD or CEO. But he can be appointed among designated partners who play the role similar to that of Board of directors in a company. The appointment of Chief Executive Officer by any form of organization is purely voluntary without any legal necessity. The law does not restrict appointment of Chief Executive Officer for any form of business organisation.

As noted, there are only partners in a partnership. Managers are more accurately referred to as "managing partner(s)." Many LLPs organize themselves in the hierarchical corporate form, appointing officers and the like. So if any person is appointed as Chief Executive Officer, he shall be overall in-charge of managing affairs of the organisation and also responsible for day to day functioning of the organisation unless otherwise mentioned in employment contract. It should be noted that designations like MD or CEOs in a limited liability partnership are only meant for the internal purposes and shall not be displayed officially to other people.

In short, a limited liability partnership operating in India can have a CEO.

{{blog.title}}

Relative Blogs

More Categories