Who has the authority to bind the LLP by their actions?

The authority to bind a Limited Liability Partnership (LLP) by their actions is generally vested in all members of the partnership, as long as they are not aware of any limitations on that authority. This means that any member can enter into contracts or conduct business on behalf of the LLP, provided there are no internal restrictions or lack of authority that they are aware of.

This structure is designed to facilitate collaborative decision-making and ensure that the LLP can function efficiently. Members are expected to take reasonable care to ensure they are acting within the bounds of their authority, but should they act in good faith without knowledge of any restrictions, their actions can legally bind the LLP.

In contrast, the other options present limitations or misunderstandings of who can act on behalf of an LLP. Designated partners traditionally have specific roles, but not all authority is restricted to them; likewise, external directors or junior partners lack the broad authority granted to all members unless specifically stated. Thus, the correct understanding is that all members have this binding authority unless they are aware of restrictions on their powers.