New Members’ Non-Disqualification Confirmation Letter

The reforms under the Economic Crime and Corporate Transparency Act 2023 (ECCTA) extend to LLPs. The ECCTA is being implemented in phases. The first phase of implementation as relevant to LLPs occurred on 4th March 2024 when the Limited Liability Partnerships (Application of Company Law) Regulations 2024 came into force. These regulations amend previous regulations to ensure that certain amendments made to the Companies Act 2006 by the ECCTA apply (with modifications) to LLPs.

As of 4th March 2024, a person may not be a member of an LLP if they are disqualified from acting as a company director. If a member becomes disqualified, the members of the LLP are required to remove that member. If they fail to do so, they commit a criminal offence.

This is particularly important for existing LLPs, as there is no power to expel a member of an LLP under statute. This template letter from a new member to the LLP confirms that the new member is not and never has been disqualified from acting as a company director. It further confirms that the member understands that in the event of becoming disqualified, the member will automatically and immediately cease to be a member of the LLP. 

This template letter aims to provide additional comfort to LLPs and LLPs should make it a requirement that all new members execute this letter as well as the deed of adherence.

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New Members’ Non-Disqualification Confirmation Letter is part of Corporate Documents. Just £35.00 + VAT provides unlimited downloads from Corporate Documents for 1 year.