Chapter XIV - Miscellaneous
Section 66
Section 66: Business transactions of partner with limited liability partnership
A partner may lend money to and transact other business with the LLP, holding the same rights and obligations for those transactions as a non-partner.
On this page
Need advice on Section 66?
This article is for general information. Refer to the Limited Liability Partnership Act, 2008 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
A partner may lend money to and transact other business with the limited liability partnership and has the same rights and obligations with respect to the loan or other transactions as a person who is not a partner.
Introduction
Document the loan or commercial terms and distinguish the partner’s transaction rights from rights arising under the LLP agreement.
Key takeaways
Partner loan
A partner may lend to the LLP.
Other transactions
Other business transactions with the LLP are allowed.
Comparable position
For such transactions, the partner has the same rights and obligations as a non-partner.
Document the transaction
Record amounts, terms and the LLP’s authorisation for the loan or supply.
Separate capacities
Determine rights from the transaction apart from the person’s partner position.
Practical preparation
Record the transaction: Set out principal, repayment and other terms in a loan agreement.
Review authority: Check the LLP agreement and internal approvals for the proposed transaction.
Keep separate records: Record the partner’s creditor position and payments distinctly from capital contributions.
Practical checklist
Do
- Record amounts, terms and the LLP’s authorisation for the loan or supply.
- Determine rights from the transaction apart from the person’s partner position.
Avoid
- Do not apply this section without checking its stated conditions and any prescribed rules.
Illustrative example
Hypothetical: section 66 in practice
A partner proposes to lend money to the LLP on documented terms.
Record the transaction
Set out principal, repayment and other terms in a loan agreement.
Review authority
Check the LLP agreement and internal approvals for the proposed transaction.
Keep separate records
Record the partner’s creditor position and payments distinctly from capital contributions.
Outcome
- Section 66 permits the partner transaction and applies the same loan rights and obligations as for a non-partner.
Glossary
- Business transactions of partner with limited liability partnership
- A partner may lend money to and transact other business with the LLP, holding the same rights and obligations for those transactions as a non-partner.
Frequently asked questions
What does section 66 address?
A partner may lend money to and transact other business with the LLP, holding the same rights and obligations for those transactions as a non-partner.
What should be checked in practice?
Document the loan or commercial terms and distinguish the partner’s transaction rights from rights arising under the LLP agreement.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026