- November 16, 2020
- Posted by: PIONEERLAWHUB
- Categories: BLOG, UPDATES
PARTNERSHIP OF MORE THAN 20 PERSONS, WHEN PERMITTED.
S. 19 (1) to (3) CAMA 2020 provide:
S. 19 (1)No association, or partnership consisting of more than 20 persons shall be formed for the purpose of carrying on any business for profit or gain by the association, or partnership, or by the individual members thereof, unless it is registered as a company under this Act, or is formed in pursuance of some other enactments in force in Nigeria.
(2) gives exemptions to:
(a) registered co-operative societies
(b) Firm of legal practitioners, , or
(C) Firm of accountants
Subsection((3) gives penalty for contravention of this Section:
” If at any time the number of members of an association or partnership exceeds 20 in contravention of this section and it carries on business for more than 14 days while the contravention continues, each person who is a member of the company, association or partnership during the time it so carries on business is liable to a fine as prescribed by the Commission for every day during which the default continues”
It is crucial to take note of the provision, take benefits of the exception/exemptions and advice clients in line with the regulations guiding business formation in Nigeria.
Do have a blessed week!
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