- 5 Marks
BCL – Nov 2023 – L1 – Q4b – Alternative Forms and Constitutions of Business Organisations
Advise on the registration requirements for an association under the Companies Act, 2019 (Act 992).
Question
b) A 30-member youth group came together for the purpose of social gathering and to have fun. They called their group Bagawire Association. Soon, the group, from voluntary contributions, accrued some amount of money (from financial gains) from their indirect transactions. At the end of each year, they declared what they described as “Dividends.” An argument ensued among them with some saying that they should register the group as a company now that they are making financial gains, while others disagreed.
Required: Advise the group in respect of the requirement under the Companies Act, 2019 (Act 992) for the proposed registration. (5 marks)
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