Unlimited liability for fraud: LLPs and culpable partners become personally responsible for debts and civil compensation.

Unlimited liability applies where an LLP or any partner acts with intent to defraud creditors or for a fraudulent purpose, removing the LLP's limited liability and making the LLP and culpable partners personally liable for debts and liabilities; the LLP remains liable for a partner's fraudulent act unless it proves lack of knowledge or authority. Fraudulent conduct in managing LLP affairs also attracts criminal penalties and civil liability to compensate sufferers, though the LLP is not liable if the individual acted fraudulently without the LLP's knowledge.

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