What is a requirement for limited liability partnerships regarding governance?

Limited liability partnerships (LLPs) have specific requirements regarding their governance, one of which is the necessity of having a partnership agreement. This is crucial for outlining the operational structure, roles, responsibilities, and the profit-sharing arrangement among members. A partnership agreement provides clarity and helps prevent disputes by establishing agreed-upon terms that govern the conduct of the partners within the LLP.

The absence of such an agreement can lead to ambiguity regarding the partnership’s internal workings and how decisions are made, which could potentially harm the business’s operations and relationships among members. While other options may seem relevant, they do not align with the fundamental requirements for the governance of LLPs as stipulated by law. For instance, registering at the local council is not typically mandated for LLPs, creating a public prospectus pertains more to publicly traded companies, and the claim that LLPs cannot own property is inaccurate, as they have the right to own assets and property in their name.