Prohibition on unregistered associations requires registration or exposes members to personal liability and penal fine. Section 11 bars formation of associations, partnerships or companies beyond specified member thresholds unless registered under the Act or another Indian law; ten persons for banking businesses and twenty persons for other profit-seeking businesses. Joint families and minor family members are excluded for counting. Members of entities formed contrary to these limits are personally liable for all business liabilities and each is punishable by a fine which may extend to ten thousand rupees.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Prohibition on unregistered associations requires registration or exposes members to personal liability and penal fine.
Section 11 bars formation of associations, partnerships or companies beyond specified member thresholds unless registered under the Act or another Indian law; ten persons for banking businesses and twenty persons for other profit-seeking businesses. Joint families and minor family members are excluded for counting. Members of entities formed contrary to these limits are personally liable for all business liabilities and each is punishable by a fine which may extend to ten thousand rupees.
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