Prohibition on unregistered associations: must register or form under other law or face fines and personal liability for liabilities. An association or partnership exceeding the prescribed member threshold carrying on business for gain must be registered as a company or formed under another law; exceptions include Hindu undivided families and professional associations governed by special Acts. Members of associations contravening the prohibition are liable to a statutory fine and are personally liable for all liabilities incurred in such business.
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: must register or form under other law or face fines and personal liability for liabilities.
An association or partnership exceeding the prescribed member threshold carrying on business for gain must be registered as a company or formed under another law; exceptions include Hindu undivided families and professional associations governed by special Acts. Members of associations contravening the prohibition are liable to a statutory fine and are personally liable for all liabilities incurred in such business.
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