29 Oct 2019
Revaluation of land in LLP and admission of new partners
We 3 people are partners in llp firm, the objective of the firm is to develop land. it contains only one land currently who is market value is around 1 cr. ( note : the book value is 35 lakhs ) .
We are thinking of admitting, a fourth partner into the set firm . who would invest all the capital required for construction on the land and give us
"the old 3 partners rupeess 1 cr".
All these terms and condition for admission of the fourth partner, we would be mentioning , in his llp admission agreement, which would be registered in the register of firms.
1. prior of adding the fourth partner, if we revalue the land in our books to the actual market value that is 1cr, by an entry . will then new partner, who would take care of the work, in the firm later ... ...so would the new partner be liable to pay we 3 old partners, the revalued amount of land that is 1cr in any case ... also in case of loss.?? ( as revaluation of the land was done prior to his admission in firm)
2. is there anything else that we could do to safe guard our 1 cr which is revenue projected to us ?
( note : i have got opinion there are other ways to do said document like jv agreement , but due to partners constraints ,, this is only method left.. requested pl to suggest on same lines )